* Investors renew bets on a Greek bailout deal * Markets cautious due to risks of further accidents * Commerzbank recommends taking profits on peripheral rally By Marius Zaharia LONDON, Feb 17 (Reuters) - German Bunds fell on Friday on indications Greece will secure a long-delayed second bailout next week, but the scope for further losses was limited in the near term as the risk of a disorderly Greek default could not be ruled out. Lower-rated Italian and Spanish bonds gained, but some analysts doubted the rally would continue for much longer given the euro zone's persistent problems. Debt issued by Portugal, seen by many as the next country that could be forced to restructure its debt, underperformed. Euro zone officials said on Thursday they were putting the finishing touches to a Greek bailout deal for approval on Monday. That would pave the way for Athens to finally proceed with a bond swap whereby private creditors would give up some 70 percent of the value of their Greek bond holdings, reducing Athens' 350 billion euro debt pile by about 100 billion euros. The bailout money will be disbursed only after the debt restructuring takes place. Some jitters remain due to a tight schedule, with Greece needing to secure the funds before March 20, when it has to pay back debt worth 14.5 billion euros. Even if Greece avoids a disorderly default in March, markets are unlikely to jump on riskier assets with too much enthusiasm due to concerns over the implementation of the bailout terms and the solvency of other euro zone countries. "It feels like things are a lot more positive than they were yesterday morning, but given the history of this thing we're waiting for a spanner to go in the works," one trader said. "The market is expecting ... a deal on Monday with the window open for the PSI (private sector involvement). They can announce the details of it but then we need to see things turn up, it's not completely done yet." Bund futures were last 32 ticks lower on the day at 138.71. The trader said Bunds were unlikely to break below this year's 137-140 range in the near term. UNCERTAINTY STILL HIGH Bond prices were driven mainly by short-term investors and further headline-driven volatility was likely until developments in the euro zone debt crisis became easier to anticipate, traders said. Commerzbank strategist Rainer Guntermann said Bund yields , last steady at 1.89 percent, could struggle to break above the psychologically important 2 percent level in the near term, and even if they did, they would not trade much above it. "Some implementation risks remain, the PSI detail would be important and ... also the risk of PSI down the road (in other countries)," Guntermann said. "There are still arguments for yields to be capped on the upside." Bund yields could rise above 2 percent if the rally in peripheral bonds continued, he added, but at the same time he recommended investors to use the renewed demand for such paper as an opportunity to take profits on their long positions. Short-term Italian and Spanish debt yields have more than halved since the European Central Bank injected almost half-a-trillion euros into the banking system in late December. Banks will be able to access more cheap three-year loans in a second ECB operation at the end of this month. However, analysts said that would not necessarily spur further gains in peripheral bonds as the current rally may have been driven by investors already positioning for a high take-up. Lloyds strategists said a negative result at Monday's euro zone finance ministers meeting was still possible and that an additional delay to the Greek PSI deal would spark a selloff in peripheral bonds and send Bund yields towards the Nov. 2011 lows of 1.72 percent.