Wednesday, 04 July 2007

European Government Bonds May Decline on View ECB Will Signal Higher Rates

(Bloomberg) -- European government bonds may fall on
speculation European Central Bank President Jean-Claude Trichet
will signal further interest-rate increases after policy makers
conclude their monthly meeting.

While all 42 economists surveyed by Bloomberg News forecast
the Frankfurt-based ECB will hold borrowing costs at 4 percent
today, futures trading shows investors are raising bets the key
rate will reach 4.5 percent by year-end. Yields on Europe's
benchmark bund have risen 10 basis points this week.


Read more at Bloomberg Bonds News

No comments: