Japanese Bonds Gain on Speculation Central Banks to Ease Policy

Japanese bonds rose, following the biggest weekly gain in 10 months, on speculation the central banks of Japan and the U.S. will announce additional measures to keep borrowing costs low.

Longer-term bonds led the advance as U.S. Treasuries rallied for a third day on expectations the Federal Reserve will use its meeting today to indicate it is open to increasing debt purchases if economic growth slows. Bonds also climbed on speculation Japan’s first currency intervention since 2004 will fail to stem the yen’s appreciation, pressing the nation’s central bank to increase purchases of government bonds.