Japan’s Bonds Fall on Cost of Quake Recovery; Futures Advance
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Japanese bonds dropped as damage from the nation’s biggest earthquake on record fueled speculation the government will increase debt sales to fund recovery efforts.
Bond futures jumped for a second day after Prime Minister Naoto Kan said the danger of further radiation leaks from a damaged nuclear power station is rising. The cost to protect against Japan’s nonpayment soared to a record and stocks tumbled as the stricken Fukushima Dai-Ichi nuclear plant was rocked by two further explosions today. The Ministry of Finance will sell 1.1 trillion yen ($13.5 billion) of 20-year bonds tomorrow.