Asian Bonds Extend Rally

Japanese and Australian bonds advanced, extending a global rally, and emerging-market stocks traded at a three-year high. The U.S. dollar weakened against most peers and gold climbed.

The yield on 10-year Japanese government bonds dropped to a fresh 16-month low and the rate on similar Australian notes slipped three basis points by 11:28 a.m. in Tokyo. The MSCI Emerging Markets Index advanced 0.3 percent to the highest since August 2011 as South Korea’s Kospi index climbed 0.6 percent. Standard & Poor’s 500 futures were little changed as 30-year Treasury rates held near a 15-month low. Gold and silver rose a third day as the Bloomberg Dollar Spot Index slid 0.1 percent.

Bond yields from Spain to Germany reached all-time lows yesterday amid speculation the European Central Bank is preparing to boost stimulus. Chinese industrial-profit growth slowed to 13.5 percent in July, data today showed before Germany reports on inflation and the U.S. updates markets on economic growth. The U.S. said Russia may be directing a counteroffensive by separatist rebels in Ukraine.

Bloomberg

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