Tuesday, April 17, 2007

European Government Bonds Decline on View ECB Will Keep Lifting Rates

(Bloomberg) -- European two-year government notes fell on expectations economic indicators will reinforce the case for higher interest rates in the euro region economy.

Benchmark debt fell for a fourth week after the European Central Bank stoked speculation it will lift borrowing costs by half a percentage point this year to as much as 4.25 percent. The ZEW Center for European Economic Research said yesterday its gauge of investor expectations in Germany surged to a 10-month high in April. ECB President Jean-Claude Trichet and council member Yves Mersch are scheduled to speak today.


Read more at Bloomberg Bonds News

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