The European Central Bank said long-term government bond yields in the euro area and in the US decreased in the course of July and early August, reversing its ascending trend since end-March partly due to the US subprime mortgage market crisis. "The recent yield declines can partly be attributed to the fallout from the US subprime mortgage market turmoil, the associated re-pricing of risks and the decrease in value of certain mortgage-backed securities," it said. It said in the face of increasing market concerns about the wider impact of this turmoil on other asset classes and the potential adverse macroeconomic ramifications, the "euro area and US government bonds acted as a safe haven for investors." It noted though that overall, the current levels of bond yields on both sides of the Atlantic are likely to still reflect investors' expectations of ongoing robust growth in the economies in the euro area and the US. It said the turmoil in the US subprime mortgage market affected stock markets on both sides of the Atlantic, with stock prices in the euro area and the US declining significantly between end-June and early August. "Until mid-July major equity market indices showed some resilience to the expected fallout from this turmoil, but stock markets incurred marked losses from then on until early August," it noted.