* Greece gets more time, but aid delayed
* Uncertainty over Greece and United States supports Bunds
* Athens sells T-bills to roll over expiring debt
By Marius Zaharia
LONDON, Nov 13 German Bunds rose on Tuesday
after international lenders stopped short of disbursing Greece's
next aid tranche, with the market focusing on a short-term debt
sale in Athens required to roll over expiring debt.
The sale of one- and three-month T-bills is aimed at
refinancing a 5 billion euro issue maturing on Nov. 16. Debt
agency officials and analysts expressed confidence that the
issue will be fully funded, but the relatively large size and
the timing of the auction kept tension high.
Greece had initially planned to pay back the debt expiring
this week using bailout cash, but the International Monetary
Fund and the euro zone clashed over a long-term target date to
shrink the country's debt and aid was delayed.
Jean-Claude Juncker, the chairman of euro zone finance
ministers, said a further Eurogroup meeting would take place on
Nov. 20, while officials said more talks could be required the
following week to nail down a new deal.
The fact that Greece was given two extra years to meet the
debt cuts required by its bailout programme, however, showed the
lenders wanted the aid programme to continue, analysts said.
That limited gains for safe-haven German Bunds.
"There seems to be quite a big difference of opinion between
the IMF and euro zone finance ministers ... but our view is
still that Greece won't leave the euro zone," Rabobank rate
strategist Lyn Graham-Taylor said.
"The next few weeks will be choppy and headline-driven. The
Greek T-bill auction is the focus this morning because of its
size, but I think it will go OK. These things tend to be
purchased by Greek banks."
Bund futures were last 21 ticks higher on the day
at 143.48, having earlier hit a two-month high of 143.48.
Ten-year cash yields fell 2.5 basis points to
1.317 percent, at the bottom of their 40 bps range of the past
Strategists at Helaba Landesbank Hessen-Thueringen said the
next target for Bunds was 144.37, the Aug. 29 high. If the trend
reverses, Bunds should find support at Nov. 8's low of 142.57 or
the 100-day moving average of 142.26.
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.
"That is a big support for the (Bund) market," one trader
said. "Greece and the U.S. are the main drivers at the moment."
The German ZEW economic sentiment indicator for November,
due later on Tuesday, will also be closely watched.