Japan's Government Bonds May Rise as Terror Threats Spur Flight to Safety

(Bloomberg) -- Japan's 10-year bonds may advance
after terrorist plots in the U.K. spurred demand for the
relative safety of government debt in the U.S. and Europe.

Local bonds may follow gains in U.S. Treasuries, which rose
yesterday on speculation over potential terror threats and
weakness in the subprime mortgage market. Ten-year Treasury
yields, which yesterday dropped below 5 percent for the first
time in three weeks, had a 0.87 correlation with Japanese yields
in the past year, according to data compiled by Bloomberg.


Read more at Bloomberg Bonds News