LONDON, Feb 5 (Reuters) - German Bund futures rose sharply on Thursday after the European Central Bank said it will stop accepting Greek bonds in return for funding, shifting the burden onto the country's central bank.
The move, which will take effect from Feb. 11, was a response to what many in Frankfurt see as the new Greek government's abandoning of its bailout agreement and isolates Athens unless it strikes a new deal.
"The ECB is clearly putting pressure on Greece," said Nordea analyst Holger Sandte.
Bund futures rose 51 ticks to 159.13, while 10-year yields were 4 basis points lower at 0.328 percent.
Italian BTP futures fell 53 ticks to 138.46. (Reporting by Marius Zaharia; editing by John Stonestreet)