French and German yields surge as S&P warns about downgrading

German and French bonds declined after Standard & Poor's told it may lower the sovereign ratings of 15 European countries. Borrowing costs on French 10-year notes climbed 10 b.p. while those on German 10-year bonds increased 5 b.p. According to S&P statement, France, Germany and other AAA rated European nations may be downgraded if the summit on December 9 will turn out to be unsuccessful.