Europe Banks are unloading sovereign bonds

Commerzbank AG and BNP Paribas SA are getting rid of sovereign bonds by anticipating losses on sale. BNP Paribas took losses of €812 m from cutting holdings of Euro zone sovereign debt. Commerzbank AG has reduced its Spanish, Portuguese, Greek, Italian, and Irish bonds by 22%. By unloading sovereign bonds banks may undermine EU officials' efforts to reduce borrowing costs and worsen region's crisis.