June 5, 2012 / 6:16 AM / 5 years ago

EURO GOVT-German Bund futures dip ahead of G7 call

 LONDON, June 5 (Reuters) - German Bund futures opened lower
on Tuesday, as investors pared back their bets on safe-haven
assets ahead of emergency talks on the euro zone crisis between
finance chiefs of the Group of Seven countries.	
 German debt prices remained near record highs, however, as
hopes for decisive policy action from the G7 were slim and the
focus remained on concerns that Spain cannot afford to bail out
its banks and that a Greek election in two weeks may push Athens
out of the euro.	
 "Political headline risks remain ... and with the G7 finance
ministers and central bank governors ...to hold a conference
call on the situation in Europe today, hopes for a global
response might be spurred," Commerzbank rate strategist Benjamin
Schroeder said in a note to clients.	
 At 0602 GMT, Bund futures were 17 ticks lower on
the day at 145.61, having hit a record high of 146.89 on Friday,
when cash yields hit record lows across the curve and two-year
yields turned negative for the first time. 	
 Hopes for crisis-fighting measures are also pinned on a
European Central Bank meeting on Wednesday, the first day after
a long bank holiday weekend in Britain.	
 Speculation that the ECB may ease monetary policy has grown
in recent days, but such bets carry a high risk. A vast majority
of economists in a Reuters poll expect the central bank to hold
 (Reporting by Marius Zaharia; Editing by John Stonestreet)	

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