German Bund futures slipped at the open on Tuesday with lower-rated euro zone bonds seen firmer after Greece secured its next aid payment and political tensions in Portugal eased.
Greek yields were expected to extend the previous day’s falls after euro zone finance ministers approved a 6.8 billion euro payment which spares the country from default in August.
“For Greek bonds it’s positive so yields can drop further,” said Mathias van der Jeugt, a strategist at KBC in Brussels.
“For the overall market this is slightly positive for risk but we already had the message yesterday that there was an agreement so I expect the impact to be limited apart from on Greek bonds.”
Bund futures were 6 ticks down at 141.88 compared with 141.94 at Monday’s settlement. [Reuters]