The deal will see Greek bondholders accept a 50 percent loss on their investments, while banks will be recapitalised and the size of the euro zone bailout fund, the EFSF, will be scaled up to around one trillion euros .

December Bund futures were a point and a half lower at 134.11, while Italian BTP futures were up almost a full point.

Ten-year cash German yields were up 13 basis points at 2.18 percent, while the euro hit a seven-week high versus the dollar and European shares were set to rally.

"They've done more than was expected going into the meeting, so we've got Bunds down and they're probably going to go further," a trader said.

"That said, there's still a lot of meat to put on the bones."

With optimism quickly disappearing after previous supposedly comprehensive solutions to the debt crisis were announced, markets will need to see more details of how the proposals will work along with plans for a quick implementation.