Monday, April 5, 2010

Citigroup (NYSE:C): Weak Yen Produces Weak Bond Futures

Japan Bond Futures

Citigroup (NYSE:C) analysts say, as the yen weakens in Japan, it has fueled speculation it'll help the exporters earnings, driving investors from the relative safety of bonds or debt to the equities market.

It is expected that bond futures will continue to drop, although that will depend on how stocks perform of course.

Most think bonds will continue testing lower prices before entering into a time of fluctuation, according to analyst Kazuhiko Sano of Citigroup Global Markets Japan.

Today Japan’s Finance Ministry will be selling $23.3 billion in 10-year bonds. It is thought the primary dealers could reduce their exposure to bonds before they offer them to investors.

Japan Bond Futures

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