The M\"{o}ssbauer Effect(ME) is frequently used to investigate magnetically
ordered systems. One usually assumes that the magnetic order induces a
hyperfine magnetic field, Bhyperfine, at the ME active site. This is the
case in the ruthenates, where the temperature dependence of Bhyperfine at
99Ru sites tracks the temperature dependence of the ferromagnetic or
antiferromagnetic order. However this does not happen in the rare-earth
intermetallics, GdRu2 and HoRu2. Specific heat, magnetization, magnetic
susceptibility, M\"{o}ssbauer effect, and neutron diffraction have been used to
study the nature of the magnetic order in these materials. Both materials are
found to order ferromagnetically at 82.3 and 15.3 K, respectively. Despite the
ferromagnetic order of the rare earth moments in both systems, there is no
evidence of a correspondingly large Bhyperfine in the M\"{o}ssbauer
spectrum at the Ru site. Instead the measured spectra consist of a narrow peak
at all temperatures which points to the absence of magnetic order. To
understand the surprising absence of a transferred hyperfine magnetic field, we
carried out {\it ab initio} calculations which show that spin polarization is
present only on the rare-earth site. The electron spin at the Ru sites is
effectively unpolarized and, as a result, Bhyperfine is very small at
those sites. This occurs because the 4d Ru electrons form broad conduction
bands rather than localized moments. These 4d conduction bands are polarized
in the region of the Fermi energy and mediate the interaction between the
localized rare earth moments.Comment: 34 pages -Revtex + 17 ps figure