Japan's Bonds Set for Biggest Gain in 10 Months on U.S. Subprime Concerns

(Bloomberg) -- Japan's 10-year bonds headed for the
biggest gain in almost 10 months after credit-rating downgrades
of U.S. subprime mortgages sparked demand for government debt.

Bonds ended a five-day drop after Moody's Investors Service
cut credit ratings on $5.2 billion of bonds backed by subprime
mortgages, reviving concerns that the U.S. housing market will
slow. Signs of a weaker U.S. economy may reduce the likelihood
that the Bank of Japan will raise interest rates next month,
according to Akihiko Yokoyama at JPMorgan Securities Asia Ltd.


Read more at Bloomberg Bonds News