German government bonds opened lower Thurs as risk-appetite continues to improve on optimism of an agreement to Greek debt talks, despite disagreement on pension reform. Once again, Greek talks between the three coalition party leaders last night were adjourned without no agreement on accepting conditions new bailout program, with pension reforms said to be the main blockage. Reports that the head of the New Democracy party Antonis Samaras vetoed measures for more pension cuts and LAOS leader Giorgos Karatzaferis is said to have asked for legal advice from the Supreme Court and Council of State on whether some of the measures in the agreement are in line with the Greek constitution, according to the eKathimerini. Once a consensus is reached, the troika are expected to hold talks with each party leader to obtain their explicit commitment to the austerity measures. Also, once this agreed then the Greek cabinet has to approve and vote on the measures, which again is time consuming and something that isn’t on Greece’s side given its impending redemption payment for E14.4bn due in March.
EasyForexNews Research Team