Bunds steady as US fiscal worries offset Greek relief

LONDON: German Bund futures were flat at the open on Tuesday as concerns over US budget talks supported safe-haven assets even as better than expected terms for a Greek debt buyback underpinned higher-yielding euro zone bonds.

Highly liquid Bunds stabilised after the White House dismissed proposals by Republicans for steep spending cuts, heightening fears that US lawmakers will not manage to achieve a deal to avert recession-inducing fiscal tightening in the world's biggest economy.

"The fiscal cliff debate rumbles on...the growth implications if they don't get something sorted out are fairly severe and as long as that remains in play core markets remain reasonably well supported," a trader said.

The Bund future was last two ticks lower at 142.49 compared with 142.51 at Monday's settlement.