European Two-Year Yield Approaches Five-Year High as Confidence Increases

(Bloomberg) -- European two-year note yields held
near a five-year high after indexes of German investor and
Italian consumer confidence rose by more than forecast in May.

Two-year note yields touched the highest since June 2002
after European Central Bank policy makers yesterday warned
inflationary pressures in the euro region persist. Futures prices
show investors are raising bets the ECB will lift rates at least
twice more in 2007.


Read more at Bloomberg Bonds News