Saturday, August 4, 2007

European Bonds Snap Three Weeks of Gains After ECB Indicates Higher Rates

(Bloomberg) -- European government bonds snapped
three weeks of gains after the European Central Bank indicated
it will raise interest rates further this year.

ECB President Jean-Claude Trichet signaled rates may rise
from a six-year high of 4 percent as early as September, saying
``strong vigilance'' is needed to guard against price pressures.
Policy makers used the phrase a month before each of the ECB's
eight rate increases since late 2005. Trichet spoke on Aug. 2
after the bank kept borrowing costs unchanged, as forecast.


Read more at Bloomberg Bonds News

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