Sunday, June 3, 2007

European Bonds May Decline on Expectations ECB Will Raise Rates This Week

(Bloomberg) -- European government bonds may decline
as the European Central Bank will probably increase interest rates
this week and signal that borrowing costs need to rise further to
hold down inflation.

Two-year yields are near the highest in six years as
investors place wagers interest rates may go higher than
previously expected as the economy expands. ECB policy makers,
meeting on June 6, are forecast to raise their main rate a quarter
point to 4 percent, a Bloomberg News survey showed.


Read more at Bloomberg Bonds News

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