Uncertainty over Greek deal keeps markets edgy

Market hopes for a Greek deal went on something of a roller coaster ride as initial pessimism turned to hopes after confirmation that Greece would likely table its formal bailout plan to the European authorities later today.

Bond traders early yesterday, however, had been increasingly edgy about the prospects of a deal being struck as the new Greek finance minister, Euclid Tsakalotos, attended a meeting in Brussels, his first since the result of the weekend’s referendum that showed Greeks wanted its government to negotiate better debt terms from its creditors.

Money fled from European equities into core bond markets, making it even cheaper for Germany to raise money on international debt markets.