Saturday, July 7, 2007

European Government Bonds Decline in Week on Outlook for Higher ECB Rates

(Bloomberg) -- European government bonds dropped this
week, extending the worst quarterly slump in almost eight years,
after European Central Bank President Jean-Claude Trichet
signaled policy makers may raise interest rates further by year-
end.

Benchmark debt dropped, sending 10-year bund yields to near
a five-year high, as Trichet said inflation in the euro region
needs ``careful monitoring'' after the ECB kept its key rate at 4
percent. Bunds also fell yesterday after a report showed
manufacturing orders in Germany rose more than expected in May.


Read more at Bloomberg Bonds News

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