"The view is that the Greek confidence vote is a done deal so the backdrop for risk assets is looking more positive in the short-term," a trader in London said.

The Bund future fell 17 ticks on the day to 125.98 as US Treasuries also extended losses after housing data.

The yield spread between 10-year Greek bonds and their German counterparts was around 60 basis points tighter on the day at 1,422 basis points .

Copyright Reuters, 2011