Thursday, June 14, 2007

European Government Bonds Set to Drop for Sixth Week on Outlook for Rates

(Bloomberg) -- European bonds are headed for a sixth
weekly drop, the worst performance since January, on speculation
central banks around the world will be forced to raise interest
rates more than previously expected as global growth quickens.

Benchmark European debt slumped with U.S. bond markets,
sending 10-year bund yields to the highest since August 2002.
Equivalent maturity Treasury yields climbed to 5.32 percent this
week, surpassing the Federal Reserve's target rate for overnight
loans between banks for the first time since June 2006.


Read more at Bloomberg Bonds News

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