Thursday, June 28, 2007

European Government Bonds Set for 4th Monthly Drop on Growth, Rate Outlook

(Bloomberg) -- European government bonds are set to
drop for a fourth month as signs of quickening economic growth
and inflation underpin the case for further interest-rate
increases by the European Central Bank.

German bunds, Europe's benchmark, also headed for their
steepest quarterly loss in almost eight years, with 10-year
yields rising half a percentage point as the ECB raised its
lending rate to a six-year high and indicated further increases
are needed to curb inflation. ECB President Jean-Claude Trichet
has said borrowing costs are low enough to stimulate growth.


Read more at Bloomberg Bonds News

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