NEW! Investment Companies Centre

Bonds round-up: Bonds advance in quiet trading

News for Spread Betters

PreviousPrevious
NextNext

There's a new Investor Edition of CMC Markets' spread betting platform... and it's exclusive to DigitalLook.com users...

Get full details about Marketmaker:Investor Edition here. Advertisement

Date: Friday 04 Jul 2008

LONDON (ShareCast) - European government bonds made headway after buyers returned, their confidence boosted by comments from the President of the European Central Bank (ECB) Jean-Claude Trichet which suggested ECB policy-makers were not predisposed towards more interest rate rises this year.

The ECB lifted its key lending rate by 25 basis points to 4.25% yesterday in a move that was heavily foreshadowed.

The yield on the benchmark 10-year bund fell 6 ticks to 4.5%.

In the UK, gilts tracked their European counterparts higher, with the yield on the 10-year gilt sliding 6 basis points to 4.97%.

The Bank of England is to make its decision on its key lending rate next week. Despite increasing levels of noise about the need to control inflation, recent economic data suggests the UK economy is in no fit state to digest a rate increase, and no change to the base rate is expected.

The US was closed today for a public holiday.

Digital Look have been voted
"Best Research and Information Provider"

4th Floor, Bankside House, 107 Leadenhall Street, London EC3A 4AF.
Registered in England and Wales (registered no. 3678570).