Thursday, July 12, 2007

European Government Bonds May Drop for Second Day on Higher Rates Outlook

(Bloomberg) -- European government bonds may decline
for a second day on speculation the European Central Bank will
keep raising interest rates to curb quickening economic growth.

Benchmark debt fell, pushing 10-year yields up from a week-
low, as the ECB said rates are still low enough to support growth
and the European Union said the region's economy grew at a
faster-than-expected pace in the first quarter. A report July 16
may say inflation held at 1.9 percent, just below the ECB's 2
percent target, according to economists in a Bloomberg survey.


Read more at Bloomberg Bonds News

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