Chosen_One
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Japan bonds rise on speculation - 2006/10/25 15:01
Japan's government bonds gained on speculation U.S. reports this week on economic growth and home sales will add to signs demand for the nation's exports will wane.
Benchmark 10-year yields are retreating from their highest in more than two months amid speculation a housing slump and cutbacks by automakers pushed third-quarter U.S. economic growth to the weakest pace of the year. The Bank of Japan should closely monitor the direction of the U.S. economy, Governor Toshihiko Fukui said in a speech last week in Tokyo.
The yield on the 1.7% bond due in September 2016 fell 2.5 basis points, the most since Oct. 6, to 1.79% as of 3:15 p.m. in Tokyo at Japan Bond Trading Co., the nation's largest interdealer debt broker. Its price rose 0.208 to 99.243. Yields yesterday gained to 1.85%, highest since Aug. 18.
U.S. gross domestic product probably rose at an annual rate of 2% from July through September, after a 2.6% gain in the previous three months, according to the median estimate of economists in a survey. The report is due Oct. 27.
Sales of previously owned homes in the U.S. probably dropped to 6.23 million units in September from a year earlier, according to the median estimate of 65 economists in a separate survey. The data will be released later today.
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