European Bonds Fall as Central Banks Warn Interest Rates May Keep Rising

(Bloomberg) -- European government bonds fell,
sending 10-year yields to near the highest since August 2002,
after central banks in Europe warned of inflationary risks and
the possibility of higher interest rates.

Bunds were driven lower after minutes of the Bank of
England's last policy meeting unexpectedly showed Governor Mervyn
King and three other policy committee members voted for higher
interest rates. The Dutch central bank also forecast accelerating
inflation, and in Sweden policy makers increased rates for the
eighth time in 18 months, and said they'll need to raise them
further.


Read more at Bloomberg Bonds News