Bunds rise with Treasuries after solid U.S. bond sale


LONDON, Oct 11 (Reuters) - German Bund futures opened up onFriday, following Treasuries higher after solid demand at a30-year U.S. T-bond auction the previous day, though theprospect of a deal on the U.S. debt ceiling tempered gains.

Bunds also regained some ground after European Central BankPresident Mario Draghi reiterated that monetary policy wouldremain ultra-easy.

"That 30-year auction was very good in the U.S. so Bunds arefollowing Treasuries and Draghi was dovish again and so maybethose things are what's supporting Bunds. But (the market) isgoing to be trading (U.S.) headlines again," a trader said.

President Barack Obama and Republican leaders appeared readyto end a deadlock over the debt stalemate after a meeting at theWhite House on Thursday. Talks continued into the night and onesenior Republican said an agreement could come on Friday, thoughhurdles remained.

The Bund future was last 15 ticks up at 139.80compared with 139.65 at Thursday's settlement with cash 10-yearyields 1.2 basis points lower at 1.86 percent.

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