European Bonds Advance as U.S. Housing Slump Drives Investor Risk Aversion

(Bloomberg) -- European government bonds advanced,
pushing 10-year yields to the lowest in almost two months, on
concern a housing slump in the U.S. 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.


Read more at Bloomberg Bonds News