Norihisa Takao Bonds Quotations

Yields are close to their highs, and so bonds look attractive. Yields already reflect speculation that an end to the policy will come in the second quarter of next year at the earliest. Any signs of a weak economy or government opposition to changing policy may trim those bets.

Bonds are reacting to the drop in stocks. The machinery orders report is another plus.

We've already anticipated the increase in consumer prices. It is not a reason to sell bonds any more.

Buying of bonds gained momentum after the sudden drop in the Nikkei. Some investors are saying consumer prices won't rise as much as the central bank expects.