LONDON Nov 16 German government bonds inched
higher on Friday with concerns over Greece's debt sustainability
and the looming "fiscal cliff" in the U.S. keeping investors in
a risk-averse mood.
December Bund futures rose 16 ticks to 143.29,
holding within sight of Tuesday's two-month high of 143.48.
"Greece, Spain, the U.S., it's the same themes but no
developments, people stay risk averse and the market moves
sideways," a trader said.
There were further signs of the divide between the European
Union and International Monetary Fund over Greece with the EU's
top economic official seeking to rule out any write-off of
Greece's debt to governments, something the IMF argues is
necessary to put the country on a sustainable financial path
The spat has delayed the release of 31 billion euros of
emergency loans needed to keep Athens afloat.
The start of budget talks in the U.S., with fears of a
protracted stand-off in negotiations to avoid some of the $600
billion of spending cuts and tax hikes that kick-in in January,
is also seeing investors prefer lower-risk assets