German government bonds are opening lower Wednesday amid optimism over a Greek deal. This optimism is despite delay in talks yesterday between the three coalition party leaders and deferred until today due to “arrival of new document” containing the reforms and austerity measures. The Greek government has also been locked in arduous negotiations with the troika on a package of new budget cuts and economic reforms that are a condition of any new bailout package. Reports also suggest that the talks have also broken down over the troika’s new demands for cuts to basic pensions. The only optimism is Wall Street Journal article reporting the European Central Bank has made key concessions over its holdings of Greek government bonds to help cut the debt burden. Citing “people briefed” on the debt negotiations, the Journal said the the ECB has agreed to exchange the Greek government bonds it purchased in the secondary market last year at a price below face value if the talks succeed. Attention today remains on developments in Greece along with supply from Germany and the US.
EasyForexNews Research Team