Sunday, April 15, 2007

European Government Bonds May Drop for 6th Day; Germany to Raise Forecast

(Bloomberg) -- European government bonds may decline for a sixth day after Bundesbank President Axel Weber said Germany's central bank may raise its forecast for economic growth this year.

Benchmark debt fell for a fourth week after the European Central Bank added to speculation it may lift interest rates as much as half a percentage point this year. ``There is the chance we may raise our forecast,'' Weber, who is also a council member of the ECB, told Germany's Frankfurter Allgemeine Zeitung. The Bundesbank's current forecast for growth in Europe's largest economy is around 2 percent.


Read more at Bloomberg Bonds News

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