German government bonds are opening higher Friday, amid position-squaring ahead of the key US payrolls data. The key non-farm payrolls are forecast to rise 135k in Jan, continuing a trend of decent payrolls gain, but a number of economists have revised their estimates for payrolls lower after the weak US ADP data Bunds are seen underpinned
by continued uncertainty over the Greek PSI deal, where further cracks in discussions are beginning to emerge. Greek officials are now turning to “OSI”, or official sector involvement, according to eKathimerini. FinMin Venizelos is amongst those making comments, calling for the ECB to take some losses on Greek holdings in order to make the new debt levels more sustainable, eKathimerini says. Also noted are headlines in the UK press that Brussels “discovers a new E15bln black hole in Greece finances”, which confirms talks earlier this week that Greece’s funding needs from the second bailout package has increased again to E145bln from E130bln prior. Greek 10-year spread is currently 10bps wider at
+3354bps.
EasyForexNews Research Team