By NICK CAWLEY LONDON—Non-core euro-zone government bonds were little changed Monday, with the exception of Belgium, but market participants were keeping a close watch on any possible further moves by rating firms after a flurry of rating actions after Friday's close. Moody's Investors Service downgraded the Kingdom of Belgium's government bond rating two notches to Aa3 from Aa1 and, more worryingly, kept the country on negative outlook. Fitch Ratings placed Belgium, Spain, Slovenia, Italy, Ireland and Cyprus on negative watch, while promising to complete its review by the end of January. Fitch also affirmed France's triple-A rating but placed the country on negative review. "Standard & Poor's however remain conspicuously silent having threatened on December 5 to downgrade 15 of the 17 euro-zone members should the December 9 summit disappoint," noted Rabobank, adding that unless euro-zone finance ministers make good on their pledge to bolster the International Monetary Fund's firepower with €200 billion ($260 billion) in bilateral loans, "a slew of S&P downgrades look much more likely." Among 10-year government bonds, Belgium's yield is 0.08 percentage points higher at 4.35%, Italy is 0.01 percentage point lower at 6.92%, while Spain is 0.03 percentage points lower at 5.25%, according to Tradeweb.

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