U.S. Treasury yields rose on Friday on optimism that Greek and European negotiators will reach a deal over the terms of Greece’s bailout, and after better-than-expected growth in Germany’s economy reduced demand for safe haven debt.
Greece agreed on Thursday to talk to its creditors about the way out of its hated international bailout in a political climbdown that could prevent its new leftist-led government running out of money as early as next month.
“Greece continues to hang in the balance, it sounds like the talks have been a little bit more constructive,” said Sean Murphy, a Treasurys trader at Societe Generale in New York. Germany also grew by a much stronger than expected 0.7 percent in the fourth quarter of 2014, with domestic demand lifting Europe’s largest economy out of its mid-year lull to take growth for the whole year to 1.6 percent and raise hopes of a strong 2015.
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