EURO GOVT-Bunds rise as Korean tension supports safe havens

LONDON, Dec 20 (BestGrowthStock) – Bund futures rose in line with
U.S. debt prices on Monday to open higher against Friday’s
settlement with tension in the Korean peninsula supporting safe
haven assets, but low volumes were expected to exaggerate moves.

The Bund future (FGBLc1: ) was up 49 ticks at 124.87, in line
with a rise in U.S. Treasury futures (TYv1: ) which started after
European trading hours on Friday, with buyers seen returning to
pick up bargains after the recent sharp selloff.

“The U.S. Treasury market is certainly setting the tone …
although this is thin holiday market,” said Rainer Guntermann,
strategist at Commerzbank in Frankfurt.
South Korea’s military have fired dozens of artillery rounds
during a live-fire drill from the disputed island of Yeonpyeong
on Monday, a Reuters witness said. [ID:nTOE6BJ04A]

“I would expect a positive undertone given the risk aversion
which is likely to build on not only the Korean issues but also
on lower equities,” Guntermann added.

The 10-year German bond yield (DE10YT=TWEB: ) was 2.985
percent, down 4.3 basis points while the two-year Schatz yield
(DE2YT=TWEB: ) fell 1.7 basis points to 1.048 percent.
(Reporting by William James; Editing by Susan Fenton)

EURO GOVT-Bunds rise as Korean tension supports safe havens