Japanese Bonds Head for Worst Quarter Since 2006 on Interest-Rate Outlook

(Bloomberg) -- Japan's government bonds rose,
heading for the biggest gain since March, on speculation
investors are buying the securities to match a monthly change in
a benchmark index.

Nomura Securities Co. will add debt including 10- and 20-
year bonds sold this month to its Bond Performance Index in July
and remove securities due in a year and less. Money managers
such as the Government Pension Investment Fund, which runs the
world's largest pool of retirement wealth, use the index to
decide on holdings. Bonds also advanced after a report today
showed consumer prices in Tokyo unexpectedly declined this month.


Read more at Bloomberg Bonds News