FXStreet (Bali) – ANZ Research Teams summarizes the latest developments on the Greek funding negotiations, noting a growing sense of fear, reflected by media reports, that the EU may be preparing to deliver an ultimatum.
Key Quotes
“Although there is reasonable confidence that Greece will reach a deal with creditors in coming days, things didn’t exactly go to plan today, with news that the IMF had left Brussels without a deal, and the EU telling Greece to stop manoeuvring and decide whether it wants to be in or out of the Euro.”
“Indeed, Bloomberg News reports that EU President Donald Tusk has said that “we need decisions, not negotiations now” and that “there is no more space for gambling, there is no more time for gambling. The day is coming I am afraid that someone says the game is over”. “
“Until now, Tusk had been a sort of “neutral” broker in negotiations, but he has abandoned that stance and some in the media fear that this is a sign that the EU may be preparing to deliver an ultimatum.”
“Whatever eventuates, the news helped turn souring sentiment in the German bund market, and cap the rise in US Treasury bond yields. Financial markets are tiring of Greece, but until we get any clarity on what happens next, it will remain a niggle factor – unhelpful for risk appetite, but helpful in containing bond bearishness and NZD bullishness.”
(Market News Provided by FXstreet)