European Government Bonds Drop as Trichet Says ECB Rates `Accommodative'

(Bloomberg) -- European bonds fell for a third day
after European Central Bank President Jean-Claude Trichet
signaled the ECB will raise interest rates further this year.

Yields on the 10-year bund rose to the highest since June 25
as Trichet said inflation needs ``careful monitoring'' after the
central bank kept borrowing costs at 4 percent today. Investors
increased bets policy makers will lift rates as much as half a
percentage point by year-end, futures trading shows.


Read more at Bloomberg Bonds News