Wednesday, June 6, 2007

European Government Bonds May Fall After Trichet Says Rates Support Growth

(Bloomberg) -- European government bonds may fall
after European Central Bank President Jean-Claude Trichet said
euro-region interest rates are still low enough to help economic
growth, allowing for further borrowing-cost increases.

Two-year yields fell from a six-year high yesterday after
Trichet failed to signal the ECB will raise interest rates beyond
this year, and as it kept its inflation forecast for 2008
unchanged. Interest-rate futures show traders are betting on at
least one more quarter-point rate increase from 4 percent.


Read more at Bloomberg Bonds News

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