Government bonds in the Eurozone saw yields fall as investors worried that an increase in the money supply would push the European Central Bank to raise interest rates when they meet next week. The money supply grew at a rate of 8.8 percent in April, up from 8.5 percent in March. Also adding to forces holding bond prices down in the region was a comment from an ECB official that rising energy costs are sending core inflation up. Late in the day, yields on the two-year Schatz were at 3.313 percent, a rise of 4.3 basis points, while the ten-year Bund had added 4.7 basis points to a yield of 3.935 percent.

Tags: Interest Rates News, European Economy News //