German Two-Year Notes Drop as Trichet Says ECB May Boost Rates
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German 2-year notes fell for a second week, pushing the yield to the highest level in more than two years, after European Central Bank President Jean-Claude Trichet said interest rates may be raised in April.
The extra yield investors demand to hold 10-year notes over 2-year debt decreased to 1.51 percentage points, the narrowest since the week ended Nov. 12. Greek bonds fell on concern higher borrowing costs may hamper the region’s most-indebted countries.