News Headline Summary

Equity markets in Europe set to open higher following the statement from the EU/IMF on Greece overnight

Update details:

- Eurozone finance ministers and the IMF have reached a deal on a new debt target for Greece targeting a Greek debt-to-GDP ratio of no more than 124% by 2020. Also, EU's Juncker said that Eurozone agrees to lower interest on bilateral loans to Greece by 100bps. He also added that central banks are to forgo Greek bond profits.
- Greek Finance Minister said that Greece are to conduct a debt buyback via a loan to begin now and to end by December 13th.
- As a result, with German Bunds trading sharply lower, peripheral bond yield spreads are tighter in early trade. SP/GE 10s and IT/GE 10s tighter by 7bps and in the short-end SP/GE 2s and IT/GE 2s tighter by 4bps.
- EUR/USD gained overnight, trades just below the key 1.3000 level.

Print 07:55, 27 Nov 2012 - Market Analysis - Source: RANsquawk