Shinji Nomura News
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Japan’s bonds dropped, sending benchmark 10-year yields to the highest level in more than seven weeks, as signs of improvement in the U.S. economy sapped demand for the relative safety of government debt.
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Japan’s 10-year bond yields , mired in the past week at the lowest levels in seven years, may surge to 1.75 percent by year-end as the nation’s economic recovery proves resilient, according to Nikko Cordial Securities Inc.
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Japan’s bond futures fell, halting a three-day gain, on concern the government will boost borrowing to finance reconstruction after the nation’s biggest earthquake.
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Costs to protect against a default by Japan reached a six-month high ahead of today’s sale of longer-dated notes and a record 144.9 trillion yen ($1.76 trillion) of bonds next fiscal year.
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Treasury 10-year notes headed for the steepest weekly gain since the last time the Federal Reserve cut interest rates in 2008 as concern the global recovery is faltering stoked demand for the safest assets.
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Japanese bonds dropped for a second day on speculation yields are too low given that the economy is showing signs of sustainable growth.
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Japan’s bonds fell after the Bank of Japan refrained from taking additional measures to expand liquidity and kept its economic assessment unchanged.
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Treasuries fell, led by five-year notes, before a government report today that may show U.S. hiring rose last month amid mounting concern the global economic recovery may be faltering.
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Japanese bonds fell, pushing benchmark yields to the highest level in five months, as a rally in stocks and optimism the U.S. recovery is gaining momentum damped demand for the safety of government debt.
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Japanese bonds fell this week, with benchmark debt ending five weeks of gains, as a weaker yen improved the outlook for the nation’s export earnings.
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