Wednesday, July 25, 2007

Japanese Bonds May Decline as Yields Near Seven-Week Low to Deter Buyers

(Bloomberg) -- Japanese bonds may fall on concern
10-year yields near the lowest in almost seven weeks will
discourage investors from buying before a government auction.

A rebound in U.S. stocks may help push up the Nikkei 225
Stock Average from its lowest close in almost a month yesterday,
reducing demand for the safety of government debt. The yield
premium of 20-year bonds relative to five-year notes is near the
highest since May on speculation traders will sell the longer-
dated debt to protect against possible losses at an auction of
the securities today.


Read more at Bloomberg Bonds News

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