Japan's Bonds Gain for Third Week on Growing Recession Concern Aug. 16 (Bloomberg) -- Japan's 10-year bonds gained for a third week on growing speculation the world's second-largest economy is on the brink of a recession.
Ten-year yields fell to the lowest in almost four months during the week after a government report on Aug. 13 showed the economy contracted last quarter for the first time since 2001. Benchmark bonds also advanced on speculation the central bank will cut its assessment of the economy for a second straight month in a report next week. ``The GDP report in Japan suggested ongoing sluggish business activity and the Bank of Japan is likely to downgrade its assessment of business conditions next week,'' said Susumu Kato, chief economist in Tokyo at Calyon Securities, one of the 26 primary dealers required to bid at government debt sales. ``This is very supportive for JGBs.'' The yield on the 1.5 percent bond due June 2018 fell 1 basis point this week to 1.455 percent according to Japan Bond Trading Co., the nation's largest interdealer debt broker. The price rose 0.086 yen to 100.387. The yield fell as low as 1.415 percent on Aug. 14, the least since April 21. Ten-year bond futures for September delivery gained 0.01 this week to 137.69 on the Tokyo Stock Exchange. A basis point is 0.01 percentage point. The nation's gross domestic product shrank an annualized 2.4 percent in the three months ended June 30 as exports and consumer spending fell, the Cabinet Office said in Tokyo. `Downside Risks' ``The economy is weakening and there are more downside risks,'' Japan's Economic and Fiscal Policy Minister Kaoru Yosano said at a press conference in Tokyo on Aug. 13. ``With prices rising, consumers are becoming cautious about spending and holding back consumption.'' The odds were 11 percent yesterday that the Bank of Japan will reduce its target rate to 0.25 percent from 0.5 percent by year end, according to calculations by JPMorgan Chase & Co. using interest-rate swaps. The chance was 5 percent a week ago. The gain in bonds this week was tempered on speculation 10- year yields near the lowest since April deterred investors from buying government debt. The yield climbed as much as 6 basis points during yesterday's trading, the biggest intraday gain since July 7, after a technical chart traders use to gauge changes suggested the recent rally in bonds was too rapid. http://www.bloomberg.com/apps/news?pid=20601110&sid=aeOgC5ESo9Rg ------------------------------------ Kunjungi situs http://www.info-saham.com untuk informasi seputar saham. DILARANG KERAS MEMOSTING OPINI PRIBADI TENTANG POLITIK DI MILIS INI. Silahkan lakukan itu di milis [EMAIL PROTECTED] [EMAIL PROTECTED] untuk berhenti dari milis saham [EMAIL PROTECTED] untuk bergabung ke milis saham Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/saham/ <*> Your email settings: Individual Email | Traditional <*> To change settings online go to: http://groups.yahoo.com/group/saham/join (Yahoo! ID required) <*> To change settings via email: mailto:[EMAIL PROTECTED] mailto:[EMAIL PROTECTED] <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
