European Bonds Decline for Second Day on Stocks, Interest-Rate Outlook

(Bloomberg) -- European government bonds fell for a
second day as a surge in global equity markets eroded demand for
less risky assets, and on speculation the European Central Bank
will keep raising interest rates.

The drop in debt pushed 10-year yields up from near the
lowest in a week, as concern waned that the downgrading of
subprime mortgage-backed bonds in the U.S. may crimp growth in
the wider economy. Bonds also fell as traders bet the European
Central Bank will keep lifting borrowing costs to curb inflation.


Read more at Bloomberg Bonds News