Japan's Government Bonds May Rise After Treasuries Gain on Housing Concern

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

Debt in Japan may follow gains in Treasuries, which rose
yesterday on a report that showed 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
gains after the near collapse of a hedge fund 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