European Government Bonds Decline on Concern Growth Will Push Rates Higher

(Bloomberg) -- European government bonds fell,
pushing 10-year yields to the highest since August 2002, after
European Central Bank official Erkki Liikanen said the outlook
for growth in the euro region will be ``positive'' for years.

Bund yields have climbed 21 basis points this month as
increasing business investment and hiring in the $10.4 trillion
economy prompts traders to raise bets the ECB will increase
rates twice more in 2007. The bonds pared losses after U.S.
Treasuries rebounded today on speculation higher yields will
increase the cost of borrowing for business and households.


Read more at Bloomberg Bonds News