Friday, 27 July 2007

European Bonds Have Longest Weekly Rally for Five Months on Subprime, Risk

(Bloomberg) -- European bonds gained for a third
week, their longest winning run in almost five months, as traders
switched to the safety of government debt after stocks plunged
around the world.

The rally in German bunds pushed 10-year yields to the
lowest since May today as the risk of owning company debt surged
to a record. A gauge of corporate borrowing costs reached the
highest since October 2001 after hedge funds and banks reported
losses on investments backed by U.S. subprime mortgages.


Read more at Bloomberg Bonds News

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