LONDON Nov 27 German Bund futures fell at
Tuesday's open after Greece's international lenders agreed a
package of measures to cut the country's debt, paving the way
for the release of more aid.
The accord, reached by the lenders in their third meeting in
as many weeks, will cut Greek debt by 40 billion euros to bring
it to 120 percent of gross domestic product by
Eurogroup chairman Jean-Claude Juncker said euro zone
ministers would formally approve the release of aid to Greece,
removing uncertainty over whether Athens could avoid near-term
bankruptcy. The relief provided a lift for riskier assets such
as equities to the detriment of safe-haven government bonds.
The German Bund future was last 30 ticks down at
142.13 compared with 142.43 at Monday's settlement but traders
said the losses were likely to be limited as the deal was
already largely priced in.
"We will see a bit of pressure on Bunds but not that much as
the market was already discounting a deal," a trader said.
"The market is very short and people are looking at Spain
which looks like it's not going to make an aid request until
next year so we are likely to remain range-bound."