Bonds from AAA rated Austria, the Netherlands and Finland aresuffering as Europe's debt crisis increases volatility and erodestheir haven status.

Sixty-day volatility on 10-year government debt from the threenations reached euro-era records in November, as investorsincreased bets the currency bloc may unravel and as yields onItalian and Spanish securities surged. The countries were among 15put on watch for a rating cut by Standard & Poor's yesterday.Europe's leaders will try to fashion a solution to the turmoil thisweek after the failure of their fourth rescue blueprint sparkedconcern that the crisis will infect all 17 euro nations.

“Volatility clearly has increased and it makes life a lottougher for investors,” said Alex Johnson, who helps oversee $47billion as London-based head of portfolio management at FischerFrancis Trees & Watts. “If you are invested in countries likethe Netherlands you can find that what were safe-haven positionshave become correlated with what's going on in the periphery, whenactually the economic fundamentals are still very good.”