Japan's Bonds May Rise on Speculation Stock Drop to Spur Demand
May 11 (Bloomberg) -- Japan's government notes may advance, halting a five-day drop, on speculation a slump in global stocks will increase demand for debt.
Five-year notes may end the longest slide since December after a U.S. report showed the trade gap widened more than expected in March, spurring expectations the government may cut its first-quarter gross domestic product estimate. U.S. stocks tumbled the most in almost two months and Treasuries gained.
``Japanese bonds will probably stay firm, taking a cue from concerns over a slowdown in the U.S. economy, losses in U.S. stocks and gains in Treasuries,'' said Tokyo-based Kazuhiko Sano, chief strategist at Nikko Citigroup Ltd., the fifth-largest buyer at government debt auctions.
Ten-year bond futures for June delivery rose to 134.05 on the London International Financial Futures Exchange yesterday from 133.95 on the Tokyo Stock Exchange.
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