With July – the month that bond maturities are expected to peak – fast approaching, some fixed rate bond providers have upped their game in the competition through increased rates, offering higher returns for savers.
Moody’s Investors Service has slashed Greece’s credit rating to junk status in a new blow to the debt-ridden country that is under intense international scrutiny after narrowly avoiding default last month.
Japan’s 30-year bonds declined as stocks erased earlier losses and speculation increased that the worldwide economic recovery will stay on track.
Greek government bonds will be removed from the World Government Bond Index, the EMU Government Bond Index and the World Broad Investment-Grade Bond Index by the end of June after they were downgraded to junk by Moody’s Investors Service, Citigroup Inc. said.
South Korean government bond prices and interest rate swaps edged up on Tuesday, recouping some of the recent falls triggered ahead of tightened currency forward rules released over the weekend.
Bank of New Zealand was surprised at the level of interest in its covered bond programme, under which it managed to raise $425 million in two tranches, but does not have any plans for another issue.
Japan government bond yields may extend last month’s biggest drop this year as the Bank of Japan will ease monetary policy again after this week’s 10 trillion yen ($114 billion) measure, Kokusai Asset Management Co. said.
Canadian bonds ended lower across the yield curve Wednesday as the market continued its retreat from earlier strength.
Indian federal bonds yields rose to their highest in more than five weeks on Thursday after a top economic adviser said high inflation would need liquidity tightening.
Japan’s 10-year government bonds rose the most in 11 months after a report showed that producer prices dropped for a 10th month in October, underscoring the risk that deflation may undermine the economic recovery.
