World’s Worst Bonds Brace for Losses on Abe Growth: Japan Credit

Prime Minister Shinzo Abe’s stimulus probably helped the Japanese economy grow the most in a year, adding to pressure on 2013’s worst-performing bond market.

Gross domestic product likely expanded an annualized 2.7 percent in the three months through March, according to the median forecast in a survey of 36 economists before data tomorrow. Japanese bonds declined 14.5 percent in dollar terms this year, versus a 0.4 percent loss in Treasuries and a 1.9 percent drop in German bunds, indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies show. Inflation expectations rose to the most since at least 2009.