Euro zone bond yields at three-week highs as Syria escalation fears ease

Borrowing costs in the euro zone rose to three-week highs on Monday as hopes that a U.S.-led strike on Syria would not escalate into a broader conflict supported appetite for risk assets, denting demand for fixed income.The premium investors demand for holding Spanish government bonds over German peers fell to a one-week low after ratings agency Moody's upgraded Spain's ratings on Friday, marking the third ratings upgrade for the southern European state this year.Across the single currency bloc,