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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (44413)	8/22/2003 3:27:34 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

Eurozone bonds came under pressure from a weakening euro. The currency fell more than 1 per cent against the yen, as Japanese investors pulled funds out of foreign bonds following a sharp rise in yields for Japanese government bonds in the past couple weeks. Eurozone assets are seen as more vulnerable to Japanese repatriation, given the market expects the Bank of Japan to limit any depreciation of the US dollar against the yen. Two-year German Schatz yields were 2.4bp higher at 2.611 per cent. <It is the euro zone that is suffering the flight of capital as a result of weaker economy and not the other way around as was expected by economic pundits, US economy is looking robust and leading the global recovery as we all expected, euro weakness and euro bond weakness is sum of that sentiment- It is strange that much hyped Japanese repatriation as a result of unsustainable US deficits always seems to be working on the wrong side of the -Ike> But Japanese government bond prices rose as pension funds and insurers hunted for bargains following the market's longest losing steak in nine years and the yield on the benchmark 10-year JGB slipped 10bp to 1.34 per cent. However, analysts said JGB prices were likely to continue their fall in the near-term.