LONDON Dec 18 German Bund futures slipped on
Tuesday as increasing signs of progress in U.S. budget talks
eased demand for low-risk assets.
The prospect of a series of painful automatic tax hikes and
spending cuts next year dimmed slightly when U.S. President
Barack Obama made a counter-offer to Republicans that included a
major change in position, according to a source familiar with
That spurred some investors to unwind their positions in
safe havens such as U.S. Treasuries and German debt -- assets
used as hedges which should rally if a "fiscal cliff" deal isn't
struck. Bund futures fell 24 ticks to 144.62.
"We're lower on the fiscal cliff progress. The markets are
very thin out there and so price moves could get overdone
today," a trader said.