BLBG: Treasuries Fall After Last Week's Rally as Japan Stocks Gain
By Bob Chen
Oct. 27 (Bloomberg) -- Treasuries fell following last week's rally as Japanese stocks rose from a 26-year low on speculation the government will introduce measures to boost equities.
``The Nikkei is in positive territory and that will be contributing to the weakness in Treasuries,'' said Adam Donaldson, head of debt research in Sydney at Commonwealth Bank of Australia. ``The flight-to-quality bid in Treasuries has made valuation very difficult in recent weeks.''
The two-year note yield rose 5 basis points to 1.51 percent as of 10:55 a.m. in Tokyo, according to BGCantor Market Data. The price of the 2 percent security maturing in September 2010 dropped 3/32, or 94 cents per $1,000 face amount, to 100 29/32.
The Nikkei 225 Stock Average climbed 1 percent, snapping a three-day losing streak. The index climbed as much as 3 percent earlier.
To contact the reporter on this story: Bob Chen in Hong Kong at bchen45@bloomberg.net.
