Wednesday, June 27, 2007

European Government Bonds Gain by Most Since April as Investors Shun Risk

(Bloomberg) -- European government bonds advanced by
the most in two months as concern a weak U.S. housing market will
lead to investor losses in mortgage-backed securities stoked
demand for the safest assets.

Debt's gains pushed yields on 10-year bunds, Europe's
benchmark, to the lowest in two weeks as investors turn more risk
averse by shunning stocks in favor of debt. Expectations a weaker
housing market and losses related to subprime mortgages in the
U.S. will hurt global growth and hold down inflation also helped
lift bonds. European equity markets fell for a fifth day.


Read more at Bloomberg Bonds News

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