Friday, May 18, 2007

European Bonds Record Biggest Drop in Five Weeks as Growth Quickens

(Bloomberg) -- European bonds posted the biggest
weekly decline in five weeks after reports showed European
economies expanded faster than expected in the first quarter.

The gap in yields between 10-year European notes and U.S.
Treasuries narrowed to the least in 2 1/2 years this week as
economic growth in the euro region accelerated and U.S. expansion
slowed. European two-year yields also traded near the highest in
almost five years after European Central Bank President Jean-
Claude Trichet signaled higher interest rates.


Read more at Bloomberg Bonds News

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