German Bonds Seen Resilient as Greece Talks Produce False Dawns
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Greece’s failure to win an accord with creditors to access bailout funds sent German government bonds higher for a second week. Their appeal as a haven offered the prospect of further gains in the coming week.
Investors are waiting for confirmation that Europe’s most-indebted nation will make its next payment to the International Monetary Fund on June 5. Greek government officials said they were optimistic a deal with international creditors can be reached soon, while German Finance Minister Wolfgang Schaeuble said those positive reports “aren’t fully reflected” by the state of the talks. Spanish bonds fell this week after anti-austerity parties made unprecedented gains in local elections on May 24.