European Government Bonds Erase Gains as Investors' Subprime Concerns Ease

(Bloomberg) -- European bonds were little changed,
erasing earlier gains, after a rebound in U.S. stocks prompted
investors to return to riskier assets.

Benchmark debt earlier surged, pushing 10-year bund yields
down by the most in a year yesterday, after Moody's Investors
Services cut the credit ratings on $5.2 billion of bonds backed
by subprime mortgages and Standard & Poor's warned it may
downgrade $12 billion of debt. Stocks rebounded as investors bet
the global economy will continue growing, eroding demand for the
safest assets.


Read more at Bloomberg Bonds News