European Government Bonds Reverse Gains After Germany's Inflation Reports

(Bloomberg) -- European government bonds reversed
earlier gains after reports showed inflation quickened in
Germany, stoking speculation the European Central Bank will raise
interest rates further.

Bunds fell for the first day in four after data showed
consumer-price inflation accelerated across Europe's largest
economy in July, fueled by rising holiday costs and energy
prices. Government debt had gained earlier as a slump in global
stocks and U.S. subprime losses prompted investors to buy the
safest assets.


Read more at Bloomberg Bonds News