German government bonds trading sharply higher Friday following comments from the leader of Greek LAOS party, Giorgos Karatzaferis, who said his party members won’t vote for the new rescue plan. Mar Bund futures opened higher amid risk-off trades after the EU rejection of the Greek bailout agreement. EU sources told MNI that 10 member states of the Eurozone are reluctant to approve a second rescue package for Greece amid doubt that Athens will be able to implement the measures it has agreed to. Bunds then squeezed higher on unconfirmed market chatter that the Greek far-right LAOS party might pull out of the coalition talks and this was later confirmed by its leader Karatzaferis, who said it won’t vote for the new rescue plan. Whilst the LAOS party only control 16 seats in the 360-seat parliament — Pasok controls 153 seats and new democrats 83 seats, thus can be passed theoretically in parliament, the troika has already said that it needs approval from all party leaders to obtain their explicit commitment to the austerity measures. thus approval of deal by EU at Weds meeting looks unlikely.
EasyForexNews Research Team