Monday, June 4, 2007

European Government Bonds May Fall on Expectation ECB to Keep Raising Rate

(Bloomberg) -- European government bonds may decline
on speculation the European Central Bank will this week signal it
is willing to raise interest rates further.

Benchmark two-year notes last month fell by the most since
March 2006, sending yields to six-year highs, on concern the ECB
needs to do more to keep inflation from quickening as growth in
the euro region economy proves to be faster than expected. A
report today may show expansion in European service industries
picked up in May, adding to the case for higher rates.


Read more at Bloomberg Bonds News

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