European 10-Year Bond Yields Hold Near Their Highest Since 2004 on Rates

(Bloomberg) -- European 10-year bond yields held near their highest since August 2004 as speculation the European Central Bank will this week signal an increase in interest rates in June are already reflected in current prices.

Ten-year bund yields have risen 28 basis points since the ECB raised borrowing costs in March as traders boosted bets on two more increases this year. Policy makers may hold rates at the May 10 meeting and flag a move next month. President Jean-Claude Trichet has said he's comfortable with investors' expectations the ECB will lift rates a quarter-point to 4 percent in June.


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