LONDON Nov 28 Bund futures firmed on Wednesday
as lack of progress towards averting large-scale, automatic
fiscal tightening in the U.S. next year supported safe haven
The Congress and the White House are in talks to reach a
deal on budget measures to avoid the so-called "fiscal cliff",
which economists warn could send the United States back in
recession and implicitly hit the global economy.
Senate Majority Leader Harry Reid said on Tuesday that he
was disappointed that there had been "little progress" on the
At 0702 GMT, Bund futures were 13 ticks higher at
"Reid came out and said there was little progress on the
fiscal cliff and as long as that's in play we're not going to
see Bunds trade off too far ... given the growth implications
next year," one trader said.
The uncertainty in the U.S. overshadowed a deal in the euro
zone to release the next aid tranche to Greece to keep the
indebted country afloat.
The renewed demand for low-risk assets boded well for a sale
of five-year German debt later in the day.