Monday, July 9, 2007

European Government Bonds May Gain on Speculation Yields Reflect Rate Risk

(Bloomberg) -- European bonds may gain for a second
day on speculation yields already reflect the risk of the
European Central Bank raising interest rates again this year.

The yield on the benchmark 10-year bund has risen 16 basis
points in the past week after ECB President Jean-Claude Trichet
signaled the bank would raise rates further. Debt may also gain
on speculation yields near a five-year high will attract buyers.


Read more at Bloomberg Bonds News

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