• Merkel due to meet with Lagarde later today
• Interbank analysts warming to possibility that Greece must soon leave EZ, with reports that IMF is swiftly losing confidence in Grreece’s ability to change and reform
• Private investors might be forced to accept a 60% haircut on Greek debt, although the IIF is still fighting to stick with original 50% agreement
• Greece selling EUR1.25billion in 6month bills
• Austria and Netherlands also auctioning 3yr and 10yr debt