Monday, July 23, 2007

European Bonds Climb, Pushing Yields to Lowest in Two Months, on Subprime

(Bloomberg) -- European government bonds gained,
pushing 10-year yields to a two-month low, as the U.S. subprime
mortgage crisis continued to stoke demand for the safest assets.

Bunds also advanced for a second day as the risk of owning
European corporate debt rose, according to traders of credit
default swaps, prompting investors to switch to safer government
securities. European 10-year yields dropped the most in 3 1/2
years last week as Federal Reserve Chairman Ben S. Bernanke said
the housing market woes may slow the wider U.S. economy.


Read more at Bloomberg Bonds News

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