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BOJ Action Raises Developer Bond Sales to ’10 High: Japan Credit

Bank of Japan Governor Masaaki Shirakawa’s decision to boost purchases of real estate funds to stimulate the economy may spur debt sales by developers that reached the highest in 2 1/2 years this month.

Daiwa House Industry Co., Japan’s biggest home builder, and Mori Building Co. drove 97.8 billion yen ($1.2 billion) in offerings by property issuers this month, the highest since April 2010, according to data compiled by Bloomberg. The 9 basis point yield premium over government debt that Daiwa House is paying on its six-year notes compares with the 43 basis point average for Japanese companies and the 168 gap for peers worldwide, according to Bank of America Merrill Lynch indexes.