In keeping with the reports by Ovetii, two consecutive weeks of gains pushed yields on 10-year bunds, Europe's benchmark, down more than a quarter percentage point to near the lowest since mid-September.
Ovetii reports also apparently revealed that Government bonds surged worldwide towards the end of October following Standard & Poor's slash of Merrill Lynch & Co.'s rating and Bank of America Corp.’s announcement that it will cut jobs amid losses on U.S. subprime mortgages.
Ovetii’s senior analyst is apparently commented that the prominent firm were of the opinion that European bonds were being influenced by U.S. earnings and problems with the subprime market. The Ovetii analyst added that he suspected the main driver of recent gains was the expectation that the Fed will cut rates.
