Friday, June 29, 2007

Emerging-Market Bonds Reverse Gains to Tumble on Subprime Mortgage Fears

(Bloomberg) -- Emerging-market bonds fell, sending
yields over Treasuries to their widest in more than three
months, as investors pared holdings of risky securities.

The declines erased gains the bonds posted after a U.S.
government report showed the inflation measure most watched by
the Federal Reserve eased in May. Emerging-market debt has
slumped this week on concerns that losses linked to subprime
mortgages may spread, increasing aversion to high-risk assets.


Read more at Bloomberg Bonds News

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