European Government Bonds Drop as Outlook for Growth, Rates Deters Buyers

(Bloomberg) -- European government bonds fell for a
second day on views stronger-then-anticipated economic growth in
the euro region will persuade the European Central Bank to raise
interest rates further from a six-year high.

Yields on 10-year German bunds, Europe's benchmark, climbed
for a second day after concerns spurred by terrorist plots in the
U.K. sent them to the lowest in three weeks. ECB President Jean-
Claude Trichet may repeat his view borrowing costs are still low
enough to fuel expansion in the $10.4 trillion economy when the
bank's policy makers meet tomorrow to set rates.


Read more at Bloomberg Bonds News