Japan's Bonds Post Largest Weekly Gain This Year on Bank Demand BusinessWeek
By Theresa Barraclough
April 16 (Bloomberg) -- Japanese bonds rose, completing the largest weekly gain in four months, on speculation banks with excess cash bought debt to secure stable returns.
Five-year notes had their first back-to-back advance in a month as the lowest Tokyo interbank offered rate, or Tibor, in almost four years reduced the cost to borrow money for debt purchases. Bonds also rose as Asian stocks slid from a 20-month high, boosting demand for the refuge of government debt.
“The sentiment has been, and will continue to be, positive for bonds,” said Kazuhiko Sano, chief strategist in Tokyo at Citigroup Global Markets Japan Inc., a unit of New York-based Citigroup Inc. “The abundance of funds at banks means that their bond-buying potential is huge.”
The yield on the 1.4 percent security due March 2020 fell two basis points to 1.34 percent, the lowest since March 24, at 4:07 p.m. in Tokyo at Japan Bond Trading Co., the nation’s largest interdealer debt broker. Yields fell 4.5 basis points this week, the largest decline since the week ended Dec. 18. A basis point is 0.01 percentage point.
Australia.TOThe job of pegging long-term as well as short-term interest rates will be difficult and very injurious to the value of the dollar, as more and more money and credit are made up out of thin air. Trillions of dollars of MBS, ABS and CDO being purchased Stock Market Rally Following 1931 Bear Crash Pattern
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