Interesting piece on Greece and the IMF’s likely attitude to any bailout. Having read some stuff about Greece last week, it looked to me like default was the sensible option for the Greek government.

I am concerned about how this could play out for bunds. If bund yields fall when there is bad news about Greece, then the ongoing bad news could push them down again. The strong breakout seems to argue against that, however. I note that EUR/USD is falling as I expected as the story rumbles on — but I got in too early, neglecting the possibility of a relief rally on the “agreement” between France and Germany.

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