Japan’s bonds rose after the nation’s auction of 20-year debt attracted record demand and a private report showed manufacturing shrank in China.
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.
A bubble forming in the Japanese government bond market risks further expansion as central bank purchases shield the notes from a global rout, according to Bank of America Merrill Lynch and Mizuho Securities Co.
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.
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.
Japan’s 20-year bonds rose the most in 17 months as concern Europe’s fiscal crisis is worsening boosted 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.
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.
"The JGB market is dead with only the BOJ driving bond prices."
- Tetsuya Miura on Nov 04, 2013