German government bonds are opening moderately higher on risk-aversion buying after the Eurogroup overnight failed to reach agreement on Greece and instead postponed the decision to Nov 26. Focus turns to 10-year Bund re-opening auction from Germany with liquidity seen as thin as US Thanksgiving holiday approaches. Eurozone finance ministers and senior Imf officials ended a nearly 12-hour meeting with no agreement on how to bring Greece’s debt down to a sustainable level, and they failed to approve an overdue tranche of bailout loan money for the country despite a looming threat of bankruptcy. The failure to approve immediate payment of a long-overdue E31.5bln loan tranche to Greece came despite official acknowledgement from Eurogroup chairman Juncker, that Greece had met all the conditions demanded of it. Eurozone finance ministers broke up their meeting around 0330GMT Wednesday morning “to allow for further technical work.” They said they would meet again on Nov 26. Attention turns to supply, where Germany (10-year Bund and 6-year linker) and Portugal (3-/6-/18-month T-bills).
EasyForexNews Research Team