Abe Unleashed After Vote Seen in Biggest Risk Drop

Japan’s bond risk is falling at the fastest pace in the developed world on bets Prime Minister Shinzo Abe will win a stronger mandate for economic stimulus in this weekend’s parliamentary elections.

Credit-default swaps that insure Japanese government bonds for five years slid 13 basis points in the past month to 69 basis points yesterday, according to data compiled by Bloomberg. Contracts for U.S. Treasuries slid three basis points during the period, while those for German bunds gained three basis points, or 0.03 percentage point.