European Bonds Advance on Concern Worsening U.S. Subprime Losses to Spread

(Bloomberg) -- European bonds advanced on concern
that defaults on U.S. subprime mortgages will worsen, prompting
investors to seek the safety of government debt.

U.S. and Japanese government bonds also rose after Bear
Stearns Cos. reported losses on hedge funds that bet on bonds
backed by the mortgages to people with poor or limited credit.
The risk of owning European corporate bonds soared today,
according to traders of credit-default swaps.


Read more at Bloomberg Bonds News