Japan's Government Bonds Climb After Treasuries Rise on Housing Concern

(Bloomberg) -- Japanese bonds advanced for a third
day on concern hedge fund losses tied to mortgages will become
more widespread, prompting investors to seek safety in
government securities.

Local debt followed gains in Treasuries, which rose
yesterday on a report showing a measure of U.S. home sales
dropped last month to the lowest in almost four years. U.S. debt,
which often leads Japan's bond prices, extended last week's
rally after the near collapse of two hedge funds at Bear Stearns
Cos. sparked speculation investors will have to write down the
value of debt containing subprime mortgages.


Read more at Bloomberg Bonds News