Japan’s government bonds rose, sending 10-year yields to a nine-year low, amid expectations the central bank will increase debt purchases to support the economy.
Investors should buy Japan’s 10-year bonds if yields rise above the key level of 1.15 percent, Mizuho Securities Co. said, citing trading patterns.
Japanese government bonds are set to extend the longest quarterly rally in nine years as faltering demand cements deflation in the world’s third-largest economy.
Japan’s 10-year government bond yields may decline to a nine-month low of 0.9 percent after breaking below the key level of 1 percent, Mizuho Securities Co. said, citing trading patterns.
Japan’s two-year bonds yielded the least relative to overnight lending rates between banks in nine months on speculation the Bank of Japan will add to monetary easing to counter the yen’s advance against the dollar.
Japanese bonds rose, pushing 10-year yields to the lowest level in seven years, as signs economic growth is slowing around the world increased demand for the relative safety of government debt.
The slide in overseas interest rates is spurring Japanese insurers to dump foreign debt in favor of domestic fixed-income securities, supporting demand at the nation’s bond auctions.
Japanese bonds fell for a third week as gains in shares and signs the global recovery is gathering momentum damped demand for the nation’s government debt.
Japan’s bonds fell, snapping a five-day gain, as reports that U.S. regulators were split on suing Goldman Sachs Group Inc. boosted Asian stocks.
"I expect to see 10-year yields drop below 0.7 percent."
- Tetsuya Miura on Nov 27, 2012