German government bonds trading higher into the New York session Monday, amid risk-aversion and stop loss buying after weekend G20 meeting failed to offer a quick fix for the Greek debt crisis. March Bund futures opened higher as markets digested comments from G20 meeting, where finance ministers and central bank governors agreed Sunday that action to shore up a euro area firewall must precede any discussion of additional IMF resources. Attention now turns to the German Bundestag vote on Greek rescue package today at 1400GMT, along with Estonia. Finland and Netherlands vote on Wednesday. Also adding to the uncertainty is the Greek debt swap with private bond holders, where deadline has been set for March 8. “It looks likely that private-sector creditors will agree to the PSI exchange, but there is still a chance that they will not”, wrote Moody’s. “The outcome of elections, expected in April, also constitutes a source of political and implementation risk”, added Moody’s. Mar Bunds then extended gains on stop loss and technical buying after break above channel resistance line from Jan 13.
StockMarketNews Research Team