European Government Bonds Advance as Stocks Decline on Earnings Concern

(Bloomberg) -- European government bonds rose,
pushing 10-year yields to the lowest in two months, after a
decline in stocks and concern over U.S. subprime losses spurred
demand for the safest assets.

Government debt also advanced for a third day as the risk of
owning European corporate bonds rose, according to traders of
credit default swaps. Business confidence in Germany fell for a
second month, prompting investors to scale back expectations of
further interest-rate increases by the European Central Bank.


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European Government Bonds Snap Advance After Report Shows Economy Growing

(Bloomberg) -- European government bonds snapped a
three-day advance after reports showed the region's economy
expanded faster than previously estimated and is poised to keep
growing through the year.

Bonds also slid as the European Central Bank said interest
rates are still low enough to support growth, suggesting it sees
room to raise them further. ECB President Jean-Claude Trichet
yesterday said there are ``upside risks'' on inflation.


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European Government Bonds May Fall Before German Factory Production Report

(Bloomberg) -- European government bonds may fall
before a report economists forecast will show German industrial
production rebounded in May, reinforcing speculation the European
Central Bank will keep raising interest rates to curb growth.

Government debt fell last week, sending yields near to near
a five-year high, after President Jean-Claude Trichet signaled
borrowing costs will rise further, and a report showed
manufacturing orders in Europe's largest economy gained more than
expected. Investors added to bets the ECB will lift its key rate
a half percentage point to 4.5 percent by the year-end.


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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.


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European Government Bonds Gain for Fourth Day; Yield Falls to Two-Week Low

(Bloomberg) -- European government bonds advanced
for a fourth day, sending 10-year yields to the lowest in two
weeks in London.

The yield on the 10-year bund fell 2 basis points to 4.58
percent by 7:13 a.m. in London, the lowest since June 11. The
yield fell 4 basis points in the two days through yesterday.


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European Government Bonds May Rise as Risk Aversion Stokes Demand for Debt

(Bloomberg) -- European government bonds may extend
gains as concern more banks will have to write down the value of
securities with U.S. subprime mortgages stokes investor demand
for the world's safest assets.

Gains in debt may send yields on 10-year bunds, Europe's
benchmark, down for a third day from the highest in almost five
years, helped by a worldwide rally in bond markets after Bear
Stearns Cos. offered $3.2 billion to bail out a hedge fund it
managed. Still, advances may be capped as a report today may show
Italian business confidence rose, underpinning expectations of
higher interest rates in the euro region.


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European Bonds Advance for Second Day ; 10-Year Yield Falls t 4.62 Percent

(Bloomberg) -- European government bonds advanced
for a second day in London.

The yield on the 10-year bund fell 3 basis points to 4.62
percent by 7:05 a.m. in London. The price of the 4.25 percent
bond due July 2017 gained 0.24, or 2.4 euros per 1,000-euro
($1,345) face amount, to 97.08. Bond yields move inversely to
prices.


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European Bonds Post Sixth Weekly Decline Amid Prospects for Higher Rates

(Bloomberg) -- European government bonds continued
their longest run of losses since January last week after central
bank officials said interest rates may need to rise to curb
accelerating growth in the $10.4 trillion economy.

Benchmark 10-year bonds fell for a sixth week as yields rose
to the highest since August 2002. European Central Bank policy
maker Axel Weber said June 14 that interest-rate policy is
``still far from being restrictive'' on economic growth.


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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.


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European Government Bonds Are Little Changed as ECB Raises Interest Rates

(Bloomberg) -- European government bonds were little
changed after European Central Bank policy makers raised interest
rates and before a speech by President Jean-Claude Trichet, who
may hint at further increases in borrowing costs.

Yields on two-year notes, more sensitive to interest-rate
expectations, held near a six-year high after the ECB lifted its
main rate a quarter point to 4 percent as predicted by all 54
economists in a Bloomberg News survey. Investors are betting
rates will go higher again this year to curb inflation as
economic growth in the euro region beats expectations.


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