Japan yields to pessimism

Hedge fund managers are once again focussing on Japan, as it becomes increasingly clear that its economic recovery is not as strong as we had hoped. Many now fear that the country is on the verge of tipping back in to recession.

The size and liquidity of the market in both Japanese government bonds and the blue chip stocks of the Nikkei 225 are attractive to hedge fund managers.

One of the ongoing strategies being pursued by hedge funds is to be long of Japanese government bonds against being