EURO GOVT-Bund futures rise as Greek aid delayed

LONDON Tue Nov 13, 2012 2:08am EST

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LONDON Nov 13 (Reuters) - German Bund futures rose on Tuesday after international lenders stopped short of disbursing Greece's next aid tranche, with investors worried about a potential fiscal crisis in the U.S. as well.

Greece was given two extra years to meet the debt cuts demanded by its bailout programme, but the euro zone and the International Monetary Fund clashed over a long-term target date to shrink the country's debt pile.

Athens will sell one- and three-month T-bills on Tuesday to refinance a 5 billion euro issue maturing on Nov. 16. Its debt agency expressed confidence the issue will be fully funded.

Investors were also watching U.S. lawmakers' efforts to reach a deal on budget cuts and avoid automatic tax hikes and spending reductions worth about $600 billion next year. The so-called "fiscal cliff" could send the U.S. back into recession and hurt the global economy.

"The Greek deal has gone through but there seems to be opposition from the IMF," one trader said, adding that the U.S. fiscal cliff was also "a big support for the (Bund) market."

Bund futures were last 12 ticks higher at 143.29, having reached a two-month high of 143.47 on Friday.

The German ZEW economic sentiment indicator for November will be released later in the day.

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