Thursday, May 31, 2007

Buy Put Options on Japan's Government Bond Futures, Daiwa Institute Says

(Bloomberg) -- Investors should buy put options on
Japan's bond futures, betting the securities will decline on
speculation the central bank will raise interest rates, said
Daiwa Institute of Research Ltd.

Ten-year bond futures may drop below the lowest since
August by the end of next month, said Takeo Okuhara, a fixed-
income strategist in Tokyo at Daiwa Institute, a unit of Japan's
second-largest brokerage. Bond futures fell today as Bank of
Japan policy board member Kiyohiko Nishimura said the bank is
aware of risks that keeping borrowing costs low may lead to
inefficient investment and financial market distortions.


Read more at Bloomberg Bonds News

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