Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| February 09, 2007 | | Spread bets and CFDs should short two-year notes | European bonds are preparing for a drop as ECB President Jean-Claude Trichet indicates that there will be an interest rate hike in March in an effort to stymie inflation in the eurozone economy. Spread betting and contracts for differences on European bonds should short, while placing spread bets and CFD orders on interest rates should consider hikes. Bloomberg reports:
Benchmark debt fell the most in three weeks yesterday after
ECB President Jean-Claude Trichet used the phrase ``strong
vigilance'' to indicate a rise in borrowing costs is imminent.
The Frankfurt-based central bank kept its refinancing rate at
3.5 percent at its monthly rate-setting meeting yesterday.
`` You need to get out of European bonds entirely,'' said
David Keeble, head of fixed-income strategy in London at Calyon.
``You can't assume they'll stop at 3.75 percent. I'm surprised
the market isn't forecasting that we'll go to 4 percent.'' | | |
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