LONDON, Aug 21 (Reuters) - German Bund futures fell on Tuesday, with some investors betting on strong European Central Bank intervention to ease borrowing costs in Spain and Italy.
Traders cited a story in British newspaper The Telegraph which said it could confirm earlier reports in German media that ECB experts were examining plans to effectively cap Spanish and Italian bond yields.
The ECB however tried to quash speculation on Monday that it would target specific interest rate thresholds as part of any bond-buying programme.
“It’s all speculation really, we’re just trading within the range in Bunds and could well get back up to 142.00 again quite quickly,” a trader said.
Bund futures were last 28 ticks lower at 141.72.