Thursday, 21 June 2007

European Government Bonds May Drop Before Ifo's German Confidence Report

(Bloomberg) -- European government bonds may drop
for a third day before a report that's expected to show German
business optimism is buoyant, adding to expectations the European
Central Bank will keep raising interest rates.

Benchmark debt slid this week, pushing 10-year yields to
near five-year highs, as central banks across Europe signaled
higher borrowing costs and after a report yesterday showed the
euro-region manufacturing grew at an unexpectedly rapid pace in
June. A separate index today may show German business confidence
held near a record this month.


Read more at Bloomberg Bonds News

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