Wednesday, June 13, 2007

European Government Bonds May Fall on Speculation Inflation Is Quickening

(Bloomberg) -- European government bonds may fall
before a report likely to show inflation in the euro region held
near the European Central Bank's 2 percent limit last month,
fueling expectations of further interest-rate increases.

Benchmark 10-year bund yields touched the highest since
August 2002 yesterday after ECB policy maker Erkki Liikanen said
the outlook for growth in Europe will be ``positive'' for years.
Futures trading shows investors are raising bets the central bank
will lift rates twice more this year.


Read more at Bloomberg Bonds News

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