LONDON, Nov 12 (Reuters) - German Bund futures held firm at the open on Monday underpinned by uncertainty over the outcome of Greek aid talks and worries over a potential fiscal crisis in the United States.
Bunds were expected to remain in demand before a euro zone finance ministers’ meeting later on Monday to discuss whether to release a new tranche of funding to the debt-plagued country after it approved a tough 2013 budget on Sunday.
German Finance Minister Wolfgang Schaeuble told a German newspaper on Sunday that the troika of international lenders to Athens was unlikely to deliver its full report in time for a euro zone finance ministers’ meeting on Monday.
Officials said the euro zone was unlikely to release the new funding as there was no agreement yet on how to make its debt sustainable, though Athens is set to get two more years to cut debt.
“I don’t think we are going to get anything concrete (from the finance ministers) in terms of the next Greek aid tranche,” a trader said.
“The market is pretty constructive as long as the global economic backdrop remains uncertain given the U.S. fiscal cliff. I don’t see why Bunds should trade off particularly.”
The Bund future was last at 143.14, flat against Friday’s settlement.