41. Gilts were little changed earlier, supported by steady German bunds and hopes that slower growth and subdued inflation mean interest rates will decline. 42. Growing evidence of subdued inflation and moderate economic growth is raising hopes they may cut rates. 43. German bonds were little changed after a slowdown in wholesale prices confirmed expectations of subdued inflation now the deutsche mark has stabilized against the dollar. 44. German government bonds held little changed after a group of economic experts forecast a slowing German economy and subdued inflation. 45. Gilts rose on opening as evidence of slower growth and subdued inflation was seen drawing investors out to buy the new debt. 46. Gilts, though off earlier highs, gained support from expectations of lower U.K. interest rates following recent evidence of slowing economic growth and subdued inflation. 47. Gold bullion dropped as investors in Japan and the U.S. sought higher investment returns than gold can deliver in economies characterized by subdued inflation. 48. In a climate of subdued inflation the principal and fixed-interest payments of bonds hold their value, making them more attractive to investors. 49. In general, bonds will likely do better next year, economists and investors say, because of prospects for moderate economic growth and subdued inflation. 50. Investors focused on the outlook for subdued inflation and low interest rates, which boost profit growth and are favorable for stock investing. |