German government bonds are opening higher Monday on risk-aversion buying after Greece and its private creditors failed to reach a full agreement on a debt swap plan this weekend. Focus turns to EU FinMin meeting in Brussels for the next directional move. FinMin’s are due to discuss new budget rules, a financial firewall to protect indebted states and a Greek debt swap. Negotiations for a debt reduction deal between Greece and its private sector creditors are continuing despite a dispute over the level of interest to be paid on new Greek sovereign bonds that would be issued in exchange for retired ones, MNI reported, citing a senior Greek government official. A draft proposal will be presented Monday for examination by Eurozone finance ministers at their meeting in Brussels, and the Greek government hopes the final deal can be sealed by the end of the week, the official said. He said the dispute, which centers on the average interest rate to be paid on newly issued Greek debt, is “part of the negotiation tactics” and that “none of the sides is willing to let the negotiations break down.”
EasyForexNews Research Team