European Government Bonds Advance as Asian Stocks Slide on Subprime Losses

(Bloomberg) -- European government bonds rose for a
second day as Asian stocks slid on concern U.S. subprime mortgage
losses will slow economic growth and drive up global financing
costs.

Gains in bunds pushed benchmark 10-year yields to near the
lowest since May as investors sold riskier assets and sought the
relative safety of government debt. Bear Stearns Cos. ousted Co-
President Warren Spector after credit-market losses and eroding
investor confidence.


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European Bonds Advance After Global Stocks Slump on U.S. Housing Concerns

(Bloomberg) -- European government bonds climbed,
pushing 10-year yields to the lowest in almost two months, after
stocks declined in the U.S. and Asia on concern a housing slump
is worsening.

Benchmark bonds rose for a second day after shares of U.S.
homebuilders sank to their lowest since 2003. A credit market
rout caused by defaults on U.S. subprime mortgages gives
``serious reasons to worry,'' without posing a systemic threat,
Moody's Investors Service said in a report.


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European Bonds Drop for First Day in Three; 10-Year Yield at 4.58 Percent

(Bloomberg) -- European government bonds dropped for
the first day in three in London, pushing yields up from their
lowest in a week.

The yield on the German 10-year bund, Europe's benchmark,
rose 3 basis points to 4.59 percent by 2:25 p.m. in London after
earlier touching 4.54 percent, the lowest since July 11.


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European Government Bonds Advance for Third Day; Yield Falls to Week-Low

(Bloomberg) -- European government bonds advanced
for a third day in London, pushing 10-year yields down to the
lowest in a week.

The yield on the German 10-year bund, Europe's benchmark,
fell 2 basis points to 4.55 percent by 8:05 a.m. in London. The
price of the 4.25 percent security due July 2017, which moves
inversely to yield, rose 0.14, or 1.4 euros per 1,000-euro
($1,379) face amount, to 97.64. The yield on the two-year
benchmark note was at 4.48 percent.


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European Government Bonds May Drop for Second Day on Higher Rates Outlook

(Bloomberg) -- European government bonds may decline
for a second day on speculation the European Central Bank will
keep raising interest rates to curb quickening economic growth.

Benchmark debt fell, pushing 10-year yields up from a week-
low, as the ECB said rates are still low enough to support growth
and the European Union said the region's economy grew at a
faster-than-expected pace in the first quarter. A report July 16
may say inflation held at 1.9 percent, just below the ECB's 2
percent target, according to economists in a Bloomberg survey.


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European Government Bonds May Drop as Economic, Rate Outlook Deters Buyers

(Bloomberg) -- European government bonds may fall as
stronger-then-anticipated economic growth in the euro region
underpins views the European Central Bank needs to raise interest
rates further from a six-year high.

Yields on 10-year German bunds, Europe's benchmark, may
climb for a second day after concerns spurred by terrorist plots
in the U.K. sent them to the lowest in three weeks. ECB President
Jean-Claude Trichet may repeat his view borrowing costs are still
low enough to fuel expansion in the $10.4 trillion economy when
the bank's policy makers meet tomorrow to set rates.


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European Government Bonds Post Weekly Gain as Reports Show Slowing Economy

(Bloomberg) -- European government bonds rallied
this week after a report showed business confidence in Germany,
the region's largest economy, fell more than expected in June.

Benchmark two-year notes posted a weekly gain after the Ifo
institute yesterday said its German sentiment index fell to 107
from 108.6 in May. Economists had expected a reading of 108.4.
Separate reports this week showed worsening optimism among German
investors and Italian consumers, damping the chances of interest-
rate increases by the European Central Bank.


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European Bonds Fall For Sixth Week as ECB Signals Higher Interest Rates

(Bloomberg) -- European government bonds fell for a
sixth week after central bank officials said interest rates may
need to rise to curb accelerating growth in the $10.4 trillion
economy.

Benchmark 10-year bonds posted their longest run of weekly
losses since January as yields rose to the highest since August
2002. European Central Bank policy maker Axel Weber said late
yesterday that interest-rate policy is ``still far from being
restrictive'' on economic growth.


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European Government Bonds Gain; Yields Near 4 1/2-Year High Lure Investors

(Bloomberg) -- European government bonds advanced,
snapping the steepest two-day slide since March 2006, as yields
near the highest in 4 1/2 years attracted investors to fixed-
income debt.

Benchmark bunds slid by the most since April last week, with
10-year yields, which reflect investors' predictions for
inflation, touching the highest since October 2002. Bonds pared
some of their advance today after European Central Bank President
Jean-Claude Trichet reiterated that interest rates are still low
enough to support economic growth, suggesting he sees room for
further increases.


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European Government Bonds May Fall After Trichet Says Rates Support Growth

(Bloomberg) -- European government bonds may fall
after European Central Bank President Jean-Claude Trichet said
euro-region interest rates are still low enough to help economic
growth, allowing for further borrowing-cost increases.

Two-year yields fell from a six-year high yesterday after
Trichet failed to signal the ECB will raise interest rates beyond
this year, and as it kept its inflation forecast for 2008
unchanged. Interest-rate futures show traders are betting on at
least one more quarter-point rate increase from 4 percent.


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European Bonds Little Changed Before ECB Meeting; Rate Increases Expected

(Bloomberg) -- European government bonds were little
changed amid speculation European Central Bank policy makers led
by President Jean-Claude Trichet will lift interest rates today a
quarter point and hint at additional increases.

Yields on two-year notes, more sensitive to interest-rate
expectations, are at a six-year high on concern the central bank
will have more to do to rein in inflation because economic growth
in the euro region is beating expectations. The bank will raise
its forecasts for inflation and economic growth, the Financial
Times Deutschland reported on June 4.


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