2006 was a difficult year for bond investments because continued monetary tightening by the major central banks drove bond yields significantly higher in the first half of the year. The US Fed funds target rate reached 5.25% at the end of June 2006, after four rounds of tightening during the year, although signs of weakening growth in the US subsequently led to a pause in the increase in interest rates. The European Central Bank raised rates by a cumulative 125 basis points in 2006, bringing the key policy rate to 3.5%. The Bank of Japan ended its five-year quantitative easing policy and announced a 0.25% tightening on 14 July 2006, and the Bank of England raised interest rates twice taking the base rate to 5%.