It appears the market is in sell-first, question-later mode as a series of confusing headlines just hit from Bloomberg, citing a Merkel interview from SDZ, in which the German leader appears to have said that Greece May and/or May not get the next Troika bailout package...
- *GREECE MAY NOT GET NEXT EU8.1B AS PLANNED, MERKEL TELLS SZ
- *GREECE MAY GET NEXT EU8.1B IN TRANCHES, MERKEL TELLS SZ
- *MERKEL SEES NO ADDITIONAL DEBT CUT FOR GREECE: SUEDDEUTSCHE Z
As we noted here, the IMF has already warned on non-payment (and a 3-day ultimatum has been set) and with the election so close, it seems Frau Merkel is between a populist rock (keeping the leash tight and explaining that they may not get the full amount but may get a tranched amount based on smaller performance hurdles) and a hard place (of saying nein and losing Europe).