Thursday, June 7, 2007

European Government Bonds Slide on ECB Rate Rise, Global Growth Outlook

(Bloomberg) -- European government bonds fell by the
most in three weeks on speculation global economic growth may
quicken, putting pressure on policy makers, including the
European Central Bank, to raise interest rates.

Ten-year bund yields rose to a 4 1/2 year high after New
Zealand unexpectedly lifted rates and Fed Bank of Richmond
President Jeffrey Lacker said U.S. growth will rebound. ECB
President Jean-Claude Trichet said the region's rates are low
enough to support expansion, allowing for further borrowing-cost
increases after lifting them to a six-year high yesterday.


Read more at Bloomberg Bonds News

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