Tuesday, 14 February 2012 15:34
LONDON: German government bonds rose at Tuesday's open after rating agency Moody's cut Italy and Spain among others and warned it may do the same to France, the UK and Austria
The move curtailed a modest rally in risk assets seen after Greece's parliament approved reforms needed to qualify for a bailout and avoid an unruly default and may weigh on the euro zone's lower-rated bonds.
Moody's late on Monday cut by one notch the ratings of Italy, Portugal, Slovakia, Slovenia and Malta and downgraded Spain by two notches saying it was worried about Europe's ability to undertake the kind of reforms needed to address the region's debt crisis.
"Between Moody's and Greece not being a done deal, we're reassessing the recent risk rally," a trader said.
Bund futures were 39 ticks higher at 138.62 with 10-year yields 3.5 basis points lower at 1.899 percent.
Greece has admitted it still faces a tough job in ...