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

LONDON, Oct 11 (Reuters) - German Bund futures opened up on Friday, following Treasuries higher after solid demand at a 30-year U.S. T-bond auction the previous day, though the prospect of a deal on the U.S. debt ceiling tempered gains.

Bunds also regained some ground after European Central Bank President Mario Draghi reiterated that monetary policy would remain ultra-easy.

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

President Barack Obama and Republican leaders appeared ready to end a deadlock over the debt stalemate after a meeting at the White House on Thursday. Talks continued into the night and one senior Republican said an agreement could come on Friday, though hurdles remained.

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