Chosen_One
User
Platinum Boarder
| Posts: 154 |   |
Karma: 1
|
European bonds drop - 2006/10/25 14:52
European bonds fell, sending yields on two-year notes to their highest in more than four years, after an industry report showed German business confidence unexpectedly rose in October.
The business confidence report may ease concern that growth in the euro region will slow. Two-year note yields, which move inversely to prices, slipped yesterday after reports in Italy, France and Belgium suggested growth will weaken in the $10 trillion euro-region economy.
The yield on the German two-year note rose 2 basis points to 3.74% as of 2:40 p.m. in London, after earlier touching 3.76%. The price of the 3.5% security due September 2008 fell 0.03, or 30 euro cents per 1,000 euro ($1,260) face amount, to 99.57. Bond yields move inversely to prices. The yield on the benchmark 10-year note rose 1 basis point to 3.89%.
The Ifo research institute in Munich said today its sentiment indicator climbed for the first time in four months to 105.3, from 104.9 in September. Economists expected a decline to 104.5, according to the median of 39 forecasts in a survey. The index reached a 15-year high of 106.8 in June.
|
Traders Forum 
