European Government Bond Yields Hold Near Two-Month Low on Subprime Losses

(Bloomberg) -- European 10-year bond yields held
near a two-month low as investors sought the safety of government
debt on concern the U.S. subprime mortgage debacle will damp
growth in the world's biggest economy.

Losses associated with troubled assets backed by loans to
homeowners with poor credit histories have spread beyond the U.S.
Japan's nine biggest banking groups have more than 1 trillion yen
($8.3 billion) of combined holdings in products backed by U.S.
subprime mortagages, according to Nikkei News.


Read more at Bloomberg Bonds News