RTRS:EURO GOVT-Bunds hit session high on pre-ECB short-covering
(Reuters) - German Bund futures extended gains on Tuesday in thin trading as caution set in before the European Central Bank's meeting later this week, while some traders also cited month-end buying.
German Bund futures rose as high as 143.87, up 48 ticks on the day.
"Pre month-end buying in thin liquidity," said one trader, explaining the move.
The Bund sold off sharply after ECB President Mario Draghi said last week that the central bank would do what was necessary to protect the euro - comments many in the market interpreted as flagging imminent policy action. A second trader said some short-covering was taking place after the sell-off.
