LONDON Nov 20 German Bund futures edged up on
Tuesday as a sense of caution returned to euro zone markets
after France lost another of its triple-A ratings.
Moody's stripped France of its prized triple-A badge on
Monday, cutting the sovereign credit rating on Europe's No. 2
economy by one notch and leaving it with a negative outlook,
citing an uncertain fiscal outlook and a deteriorating economy.
While widely expected, the downgrade injected some caution
into the market, sending the euro lower against the U.S.
"Although it's not great, the market doesn't seem too
worried. It's only a modest positive for Bunds," a trader said.
"Away from that it's still pre-Eurogroup speculation but
it's priced in that there's some sort of rubber stamping of aid
Athens appears to be on track to receive long-delayed
funding under its latest international bailout after approving
laws on Monday to enforce budget targets and ensure
privatisation proceeds are used to pay off debt.
Euro zone finance ministers meet later on Tuesday to discuss
releasing the funds.
December Bund futures were 12 ticks higher at