Wednesday, June 27, 2007

European Government Bond Rally May Stall on View Interest Rates Will Rise

(Bloomberg) -- European bonds may drop, snapping
their longest winning run in two months, as expectations the
European Central Bank will lift interest rates outweigh
speculation a weaker U.S. house market will slow global growth.

Yields on 10-year bunds may rise from a three-week low as
investors bet on two more interest-rate increases by the ECB.
Euro-region money supply growth probably held near the fastest in
24 years in May, a Bloomberg survey showed. The Federal Reserve
will probably keep its key rate on hold today citing inflation,
which may halt debt market gains worldwide.


Read more at Bloomberg Bonds News

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