Bunds rise as Sarkozy says no need to boost rescue fund

German Bund futures wiped out earlier losses and rose on Tuesday after French President Nicolas Sarkozy said there was no need to increase the size of the euro zone rescue fund.
Speaking at a news conference with German Chancellor Angela Merkel, Sarkozy said the two leaders had decided to propose common governance for the euro zone but both leaders said they saw no immediate need for common euro zone bonds.
A trader said there was disappintemnet Sarkozy and Merkel had not come up with more robust measures to tackle the euro zone debt crisis.
The September Bund future last stood at 133.32, up 39 ticks on the day, having fallen as low as 132.52.