Thursday, May 31, 2007

European Yields Hold Near Five-Year High on Rising Optimism, Rates Outlook

(Bloomberg) -- European two-year government note
yields held near the highest in five years as investors add to
bets the region's central bank will increase interest rates
further on signs of faster expansion in the 13-nation economy.

Benchmark two-year yields have climbed a quarter of a
percentage point in May as a report today showed confidence in
the $10.4 trillion euro region economy climbed this month to the
highest in almost six years. The European Central Bank has
signaled it will raise borrowing costs next week.


Read more at Bloomberg Bonds News

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