TOKYO (Reuters)- Japanese government bond futures fell on Monday in holiday-thinned trade, taking a breather from the volatility seen last week when hedge funds and other players rushed to unload loss-making trades.
Market anomalies such as negative long-term swap spreads persisted, however, although to a lesser degree compared to what was seen last week after ailing U.S. investment bank Bear Stearns agreed to a takeover offer from JPMorgan Chase.
That news had been seen as highlighting the depth of the damage caused by the tumult in U.S. credit markets, and further accelerated moves by foreign hedge funds and other market players to unwind positions that had soured.
