Thursday, May 31, 2007

Japan's Five-Year Government Notes Drop, Have Worst Month Since March 2006

(Bloomberg) -- Japan's five-year government notes had
the biggest monthly decline in more than a year on speculation
advancing stocks will back the case for the central bank to raise
interest rates this year.

Government reports this week showed the jobless rate dropped
to a nine-year low and households increased spending for a fourth
month. Bank of Japan policy board member Kiyohiko Nishimura said
the market ``appears to be factoring in future rate adjustments
in a gradual manner.'' Yields on two-year notes climbed to the
highest in almost a decade as the Nikkei 225 Stock Average rose
to a three-month high.


Read more at Bloomberg Bonds News

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