Dresdner Says Buy Treasuries, Sell German Bunds on Interest Rate Outlook

(Bloomberg) -- Investors should buy U.S. Treasuries against German Bunds to capitalize on speculation the European Central Bank will raise interest rates further while the Federal Reserve lowers borrowing costs, according to Dresdner Kleinwort.

Prices of benchmark European bonds will fall, pushing yields higher, as the ECB may raise interest rates to as high as 4.50 percent next year from 3.75 percent, said Christoph Rieger, fixed income strategist at Dresdner Kleinwort in Frankfurt.


Read more at Bloomberg Bonds News