Monday, June 4, 2007

Japan's Inflation-Linked Bonds Are a Buy as Oil Price Rises, Barclays Says

(Bloomberg) -- Investors should buy Japan's
inflation-linked bonds as a bout of deflation in the world's
second-largest economy will probably end in October, Barclays
Capital Inc. said.

The investment banking division of London-based Barclays
Plc. said rising fuel costs will boost core consumer prices
after a nine-month slump. The breakeven rate, the gap in yields
between regular and inflation-linked bonds, closed last week at
the widest since October as reports showed a falling jobless
rate and rising household spending. The rate represents what the
market expects prices will average in the next decade.


Read more at Bloomberg Bonds News

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