27 October 2005, 12:47  Japanese govt bonds close higher, tracking rebound in US Treasurys on GM news

Japanese government bond (JGB) prices finished higher, tracking the rebound in prices of US Treasury bonds traded here following news that General Motors Corp has been subpoenaed by the US Securities and Exchange Commission on an accounting probe Investors are usually sensitive to wide-ranging volatility in credit markets tied to the heavy bond issuance of GM and its finance arm, General Motors Acceptance Corp Overnight, GM said it received subpoenas from the SEC as part of an agency investigation of the car maker's pension obligations and business dealings with bankrupt Delphi Corp The rise in JGB prices drove down the yield on the No 273 10-year bond to 1.515 pct from 1.550 pct at yesterday's close, dropping for the first time since Monday The yield on the benchmark 20-year bond eased to 2.070 pct from 2.130 pct, while the yield on the bellwether five-year note was 0.815 pct, down from 0.825 pct Bond prices move inversely to yields The 10-year bond futures contract rose to 137.25 yen from 137.04 yen late yesterday

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