German government bonds are opening higher Tuesday as uncertainties in Greece continue to prevail. Focus is on resumption of meeting with Greece’s Prime Minister Lucas Papademos and the three party leaders to reach an agreement on accepting conditions new bailout program. The Greek government has been locked in parallel negotiations with visiting officials from the troika on a package of new budget cuts and economic reforms. If either these negotiations fail, then Greece will not get a second rescue package and will default, Greek FinMin Venizelos warned Monday night. If successful, the deal will be sent to the European Working Group, which will prepare the agenda for an emergency Eurogroup meeting in Brussels, possibly as early as this week. Despite Venizelos’s repeated statements that a Eurogroup would take place this Weds, no such meeting has been officially announced. Whilst this is going on, Greece’s two main trade unions – ADEDY and the GSEE are due to stage a 24-hour strike today. Also eyed is supply – where the Netherlands, UK, and US sell bonds and Slovenia and Greece sell T-bills.
EasyForexNews Research Team