LONDON, Nov 19 (Reuters) - German Bund futures slipped at Monday’s open on optimism that U.S. policymakers would make progress towards averting an imminent round of growth-crimping spending cuts and tax rises.
Leading U.S. lawmakers expressed confidence on Sunday that they could reach a deal to avert the $600 billion “fiscal cliff”, even as they laid down markers on taxes and spending that may make any agreement more difficult.
“The positive chatter on the fiscal cliff is the main driver... if these hopes build then maybe the selloff will get a bit of traction but I still get the impression there are people out there looking to buy dips,” a trader said.
Bund futures fell 14 ticks to 143.17, but remained firmly within the 142.83 to 143.48 range that held throughout last week’s trading. U.S. debt futures also dipped and equity markets rose.
Despite the weaker start to the day, German debt prices remain at historically high levels, supported by uncertainty over the payment of much-needed aid to Greece and concern over how long Spain will take to request a bailout.