LONDON Nov 26 German Bunds rose at Monday's
open, lifted by worries that a win for separatist parties in a
Spanish regional election could shake the country's political
stability, though the prospect of a Greek aid deal limited
Bund futures rose 10 ticks to 142.22, starting out
on a positive note after losing ground last week over the
growing likelihood that lenders would agree a way to pay out
much-needed bailout funds to Greece.
While the Catalonia election result underlined the political
difficulties facing Spain's government, the result fell short of
the convincing win needed to mount a push for a referendum on
independence for the region.
"The Catalonian election was pretty much expected... but any
sign of Europe splitting up isn't great when they need to be
going the other way," a trader said.
Euro zone finance ministers and the International Monetary
Fund will attempt to reach an agreement on how to make Greece's
debt sustainable at a meeting later in the day which markets
expect will result in the release of aid money to Athens.