Tuesday, June 19, 2007

Euro Interest Rate Swap Options Volatility to Rise on ECB Bets, ING Says

(Bloomberg) -- Volatility on options on two-year
interest rate swaps in Europe will likely rise faster than those
on longer maturities as investors speculate on when the country's
central bank will stop raising rates, according to ING Bank NV.

Investor uncertainty on the timing and direction of next
interest rate adjustment by the Federal Reserve will also
increase swings in short term interest rate swap rates in the 13-
nation euro zone region, said ING, the largest Dutch financial-
services company.


Read more at Bloomberg Currencies News

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