EU Official "Denies" Report Of "Greek Deal Pending" Rumor Which Sparked Stocks, Euro Surge

UPDATE: Denial *GREEK CREDITORS NOT YET DRAFTING FINAL ACCORD, EU OFFICIAL SAYS

Another day, another rumor (not yet denied) of a report that Greece and its creditors are crafting a deal (well durr)... The result, vertical buying panic in US equities, USD dumped (on EUR strength), TSY yields spike 3bps, and Crude oil surges... what a "market"

The Bloomberg headlines...

  • *GREECE, CREDITORS STARTED CRAFTING STAFF LEVEL ACCORD: OFFICIAL
  • *GREEK BANK DEPOSITS ARE SAFE, GOVT OFFICIAL SAYS
  • *GREECE, CREDITORS STARTED CRAFTING STAFF LEVEL ACCORD: OFFICIAL
  • *GREEK DEAL TO ALSO INCLUDE LONG TERM SOLUTION ON DEBT: OFFICIAL
  • *GREECE TO CHANGE PENSION SYSTEM, WON'T CUT PENSIONS: OFFICIAL

As Bloomberg reports,

Brussels Group of Greek officials, representatives of creditor institutions to start drafting Staff Level Agreement today, a Greek govt official says in e-mail to reporters.

  • Agreement to envisage low primary budget surpluses, no recessionary measures, sales tax overhaul, medium-term agreement on Greek debt relief, growth package
  • Agreement will not include additional EU1.8b in measures
  • Agreement will also envisage pension system reform, limiting early retirement, unification of pension funds; no pension cuts included
  • Disagreement between creditor institutions remains a problem; if it wasn’t for the IMF, agreement would have been reached by now
  • Creditor institutions should assume historical responsibility toward Greece, common European vision
  • Greek PM Alexis Tsipras will be in constant contact with other leaders, to facilitate reaching agreement
  • Greek deposits, financial system are safe

And the result...

The farce continues:

  • *GREEK CREDITORS NOT YET DRAFTING FINAL ACCORD, EU OFFICIAL SAYS

but

  • *TSIPRAS SAYS COUNTRY CLOSE TO DEAL WITH CREDITORS

So which is it?