Japan's Government Bonds Gain on Speculation Yields Reflect Rate Outlook

(Bloomberg) -- Japan's government bonds rose for a
second day on speculation yields near the highest in almost a year
have fully priced in the outlook for interest rates and inflation.

Benchmark bonds rebounded from a 10-day drop that had pushed
yields to levels unseen since the months following the Bank of
Japan's decision to stop pumping funds into the economy in March
2006. The central bank will probably keep interest rates unchanged
today as it awaits more evidence on the strength of the economy,
according to economists surveyed by Bloomberg News.


Read more at Bloomberg Bonds News