LONDON Nov 19 German Bund futures slipped at
Monday's open on optimism that U.S. policymakers would make
progress towards averting an imminent round of growth-crimping
spending cuts and tax rises.
Leading U.S. lawmakers expressed confidence on Sunday that
they could reach a deal to avert the $600 billion "fiscal
cliff", even as they laid down markers on taxes and spending
that may make any agreement more difficult.
"The positive chatter on the fiscal cliff is the main
driver... if these hopes build then maybe the selloff will get a
bit of traction but I still get the impression there are people
out there looking to buy dips," a trader said.
Bund futures fell 14 ticks to 143.17, but remained
firmly within the 142.83 to 143.48 range that held throughout
last week's trading. U.S. debt futures also dipped and equity
Despite the weaker start to the day, German debt prices
remain at historically high levels, supported by uncertainty
over the payment of much-needed aid to Greece and concern over
how long Spain will take to request a bailout.