European shares and the euro fell as investors sought safety in German government bonds on Friday and a two-notch downgrade of Spain's credit rating ahead of key Italian bond auction added to worries of slowing growth across the region.
World stocks hit a six-and-half-month peak and the euro rallied on Friday as hopes that Greece will seal a long-awaited bailout deal next week fuelled risk appetite.
World stocks rose and demand for German government bonds slipped on Monday as confidence grew European leaders would make big strides in solving the euro zone's debt crisis at a crucial summit this week.
Weakness in global equities along with uncertainty over Greece's debt restructuring saw investors seeking safety in quality European bonds, says Robert Parker, Vice Chairman, Credit Suisse Asset Management.