Sunday, June 24, 2007

Japan's 10-Year Bonds May Rise After Treasuries Gain on Flight to Safety

(Bloomberg) -- Japan's 10-year government bonds may
rise for a second day after U.S. Treasuries gained as investors
sought a haven from possible hedge fund losses.

U.S. Treasuries, which often lead Japanese bond prices,
advanced on June 22 after Bear Stearns Cos. offered to provide
$3.2 billion in loans to bail out one of its money-losing hedge
funds. Ten-year yields in Japan and the U.S. had a 0.88
correlation in the past year, according to Bloomberg data. A
value of 1 means the two moved in lock step.


Read more at Bloomberg Bonds News

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