European Government Bonds Decline as Report Shows Signs of Life in Economy

(Bloomberg) -- European 10-year government bonds
fell, reversing earlier gains, as a report today showed the
economy grew at an unexpectedly rapid pace in June.

Yields on longer-date debt rebounded to near a five-year
high after Royal Bank of Scotland Group Plc's combined index of
services and manufacturing showed the highest reading since
February, contrary to the decline predicted in a Bloomberg News
survey. A separate report tomorrow will probably show German
business optimism is buoyant, stoking expectations the European
Central Bank will keep raising interest rates.


Read more at Bloomberg Bonds News

Japan's 10-Year Bonds May Gain; Yields Near Seven-Month High Lure Buyers

(Bloomberg) -- Japan's 10-year government bonds may
rise on speculation yields near the highest in more than seven
months will attract investors.

A technical chart that traders use to predict price changes
suggests a five-day slide may end. Benchmark yields have risen
almost a third of a percentage point in less than three months
after falling to the lowest level in more than a year in March.


Read more at Bloomberg Bonds News