European Government Bonds Rise; Stock Declines Cut Risk Demand

European government bonds rose for a second day as investors sought the safety of debt amid a slump in stock markets.

The yield on the two-year German note fell 1 basis point to 3.97 percent as of 7:03 a.m. in London. The price of the 4 percent security due September 2009 rose 0.02, or 20 euro cents per 1,000 euro ($1,447) face amount, to 100.05. The yield on the 10-year bund fell 2 basis points to 4.18 percent. Yields move inversely to bond prices.

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