European Bonds Slide After Yellen Signals Rate Liftoff in 2015
- Euro region's longer-dated government bonds tumble most
- Fed Chair signaled gradual tightening so labor market can heal
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Europe’s government bonds followed Treasuries lower after Federal Reserve Chair Janet Yellen confirmed the U.S. central bank is poised to raise interest rates this year.
Longer-dated debt underperformed, with the yield on 10-year German bunds, Europe’s benchmark sovereign securities, climbing from the lowest in a month. Yellen said in a speech Thursday that she and most other Fed policy makers anticipate lifting rates by year-end. Euro-zone bonds rallied at the end of last week after the Fed kept its key rate at a record low and as speculation built that the European Central Bank would expand its asset-purchase program to boost inflation.