Europe Bonds Gain for Third Day as S&P, Moody's Spur U.S. Subprime Concern

(Bloomberg) -- European bonds advanced for a third
day, the longest run of gains this month, on concerns about the
U.S. subprime mortgage sector prompted investors to seek the
safety of government debt.

Yields on benchmark 10-year bunds fell the most in a year
yesterday after Standard & Poor's said it may cut credit ratings
on $12 billion of bonds backed by subprime mortgages. Moody's
Investors Service later in the day lowered ratings on $5.2
billion of debt backed by home loans.


Read more at Bloomberg Bonds News