LONDON Dec 4 German Bund futures were flat at
the open on Tuesday as concerns over U.S. budget talks supported
safe-haven assets even as better than expected terms for a Greek
debt buyback underpinned higher-yielding euro zone bonds.
Highly liquid Bunds stabilised after the White House
dismissed proposals by Republicans for steep spending cuts,
heightening fears that U.S. lawmakers will not manage to achieve
a deal to avert recession-inducing fiscal tightening in the
world's biggest economy.
"The fiscal cliff debate rumbles on...the growth
implications if they don't get something sorted out are fairly
severe and as long as that remains in play core markets remain
reasonably well supported," a trader said.
The Bund future was last two ticks lower at 142.49
compared with 142.51 at Monday's settlement.