European Two-Year Note Yields Hold Near Five-Year High on ECB Rate Bets

(Bloomberg) -- European bond yields held near their highest in five years on expectations the European Central Bank will this week prepare investors for an interest-rate increase next month.

Two-year yields have risen 32 basis points since the ECB lifted borrowing costs in March as traders bet rates will rise twice more to 4.25 percent this year. The Federal Reserve is scheduled to decide on interest rates tomorrow and the ECB in two days time. All economists surveyed by Bloomberg News expect the Fed to keep the benchmark rate unchanged at 5.25 percent.


Read more at Bloomberg Bonds News