LONDON, Dec 4 (Reuters) - German Bund futures rose on Tuesday on concerns that U.S. budget talks were heading for a deadlock that could trigger recession-inducing fiscal tightening in the world’s biggest economy.
The White House dismissed proposals by Republicans for steep spending cuts, heightening fears that U.S. lawmakers will not reach a deal in time to avert $600 billion in automatic budget measures coming into effect in early 2013.
“There has been some buying of duration from Asia overnight. I sense that the fiscal cliff talks are stalling a bit,” a trader said.
German Bund futures were last up 20 ticks on the day at 142.71, off the session’s low of 142.44.