Friday, June 22, 2007

European Government Bonds Rally After German Confidence Index Declines

(Bloomberg) -- European government bonds rallied
after a report showed business confidence in Germany, the
region's largest economy, unexpectedly fell this month.

Benchmark yields dropped from near a five-year high after
the Ifo institute's German sentiment index fell to 107 from 108.6
in May. Economists had expected a reading of 108.4. Separate
reports earlier this week showed declining sentiment among German
investors and Italian consumers, damping expectations of
interest-rate increases by the European Central Bank.


Read more at Bloomberg Bonds News

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