May 26, 2005

Rising Japanese Bond Yields

From Bloomberg:

Japan's 10-year government bonds fell as yields near a 14-month low deterred investors from buying amid signs the world's second-largest economy is growing.

A government report on May 30 will probably show Japan's industrial production gained in April, according to a Bloomberg News survey. The economy in the first quarter expanded at more than twice the rate forecast by economists.

Hard to see why this trend wouldn't continue. To change it I think you would need to see a hard landing in China.

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