Burnt by bad bonds, funds give Europe another shot

OppenheimerFunds Inc's Robert Robis bought European bonds last quarter figuring they would rally as concern about slower growth trumped inflation. He was wrong.

Now, he's about to try again. Only this time, he's joined by a growing number of international investors shifting money out of Treasuries and into Europe. They are betting that the region's crumbling economy will finally temper gains in consumer prices and allow the European Central Bank to lower interest rates for the first time since 2003.

A weekly survey by research firm Ried, Thunberg & Co shows traders are the most bullish on German bunds since October 2001.