After a new Tankan report on business sentiment from the Bank of Japan came out about as expected, the Tokyo equities markets were up on Friday. The Nikkei 225 added 0.5 percent to 16,914.31, while the Topix index gained 0.3 percent to 1,657.40. Even though the Tankan figures were seen as positive, analysts are still convinced that the Bank will decline to raise interest rates when it meets next week.

In the tobacco sector, Japan Tobacco was 3.1 percent higher to ¥597,000 after it said it is talking to UK company Gallaher about a purchase.

The electronics sector added 0.5 percent as a whole, and Sony gained 1.6 percent to ¥5,050.

Domestically, the retail sector was up 0.4 percent, while Japan’s largest retailer, Aeon, was 1 percent higher to ¥2,575.

The securities sector also saw gains. Nomura Holdings added 1.2 percent to ¥2,165, while Daiwa Securities Group was up 1.4 percent to ¥1,336.

Transport sectors were driven lower by an increase in crude oil prices. Domestic airline All Nippon Airways dropped 0.9 percent to ¥433. Among shippers, Mitsui OSK was 0.5 percent lower to ¥1,110 and Nippon Yusen fell 1.1 percent to ¥847.

The rise in oil prices was good news for Inpex, however, which added 2.1 percent on the session to ¥1,010,000.

Export-related stocks were higher on Thursday in Tokyo as the yen continued to stay weak and as new data was released in the United States that showed retail sales rose 1 percent in November. The Nikkei 225 was 0.8 percent higher to 16,829.20, its highest close in seven months, while the Topix index also ended with a gain of 0.8 percent, to 1,651.85. Meanwhile, the Mothers index of small and mid-caps gained 1.7 percent to close at 1,144.42.

The gains in US sales helped the electronics sector. While Pioneer dropped 1.8 percent to ¥1,633 on a downgrade from “buy” to “neutral” from Nomura Securities, others in the sector benefited from the new sales numbers. Matsushita Electric Industrial was 0.6 percent higher to ¥3,345. Canon gained 1.7 percent to ¥6,650. Sony added 1.8 percent, helped along by its insistence that it would meet its target of shipping 3 million PlayStation 3 game consoles globally by the end of the month and that 6 million units will be shipped by the end of March.

In the tobacco sector, no news was not necessarily good news for investors. There was nothing new on a possible bid by Japan Tobacco for UK tobacco company Gallaher. This lack of fresh information sent Japan Tobacco 2.4 percent lower to ¥579,000 just a day after reaching its highest share price ever.

Prices on US Treasury bonds dropped and yields rose on Thursday after unemployment claims were reported to be down last week and as import prices were up. Prices on imported goods were up 0.2 percent in November, the first rise in three months. Meanwhile, new jobless claims were down by 20,000 in the week ending December 9, a drop that was fivefold higher than had been expected.

At midday in New York, two-year Treasury bonds were 1.3 basis points higher to 4.717 percent, while ten-year issues had added 0.3 basis points to a yield of 4.580.

Yields were also up on Eurozone bonds after two European Central Bank officials made comments that were read to mean that more interest rate hikes are soon to come. The two-year Schatz added 2.1 basis points to 3.781,while the ten-year Bund gained 2.4 basis pints to yield 3.777 percent.

In the UK, strong retail sales data lent more fuel to the fire of rate hike expectations and sent prices on gilts down for the seventh session in a row. The two-year gilt added 3.5 basis points to yield 5.108 percent, while the ten-year gilt was 6.1 basis points higher to 4.688 percent.

In Japan, meanwhile, ten-year government bonds added 1.5 basis points to a yield of 1.630 percent. Shorter-dated bonds, however, dropped 0.5 basis points, to yield 0.795 percent.

The Nikkei 225 and the Topix index both saw gains on Wednesday as export-focused stocks were up, but gains were limited by declines in utilities and in the consumer finance sector. The Nikkei added 0.3 percent to 16,692.93, while the Topix gained 0.2 percent to 1,639.19. Meanwhile, the Mothers index of small and mid-cap stocks dropped 1.1 percent to 1,125.85.

In the retail sector, department stores saw gains but weren’t able to lift the sector as a whole. Takashimaya was 1.1 percent higher to ¥1,717, while Isetan ended 1.6 percent higher to ¥2,150. On the other hand, Seven & I dropped 0.6 percent to ¥3,630.

Exporters that saw gains included Canon, which added 1.1 percent to ¥6,540. In the electronics sector, Sony was 1.9 percent higher to ¥4,880. Sharp, however, dropped 1.5 percent to ¥2,040 on the news that it is being investigated for price fixing of liquid crystal displays.

Utilities were down on profit-taking. Tokyo Electric Power fell 0.5 percent to ¥3,720, while Kansai Electric Power and Tohoku Electric Power each dropped 0.7 percent to ¥3,050 and ¥2,895 respectively.

The consumer finance sector declined after parliament passed a bill that will cut the maximum amount of interest the lenders can charger their customers. Takefuji was 1.1 percent lower to ¥4,470, while Aiful fell 1.6 percent to ¥3,610 and Credit Saison dropped 1.9 percent to ¥4,100.

The US Federal Reserve held interest rates at 5.25 percent on Tuesday, as expected. The statement that accompanied the decision said that economic growth in the United States is expected to moderate, citing a substantial cooling of the housing market, but that some risk of inflation remains.

Before the interest rate announcement came, prices on US Treasury bonds were slightly higher on the news that the US trade deficit had been substantially reduced in October, a possible indication that fourth-quarter economic growth could turn out to be stronger than predicted. At midday in New York, two-year Treasury bond yields were at 4.658 percent, a drop of 1.3 basis points, while ten-year bonds were 0.6 basis points lower to 4.516 percent.

In the UK, gilts prices were lower and yields higher after new data showed that consumer prices in November were up 0.3 percent and that they had risen 2.7 percent so far this year, providing a surprise gain in UK inflation. Two-year gilts added 4 basis points to 5.042 percent, while ten-year gilts were 1.6 basis points higher to 4.612 percent.

Yields on Eurozone bonds were mixed. The ZEW index of German sentiment was at -19 in December, up from November’s reading of -28.5 and better than the predicted -25. The new figures prompted only a small sell-off as investors waited for the US interest rate decision. The two-year Schatz was up 0.3 basis points to 3.740 percent, while the ten-year bund dropped 0.8 basis points to 3.731.

In Japan, a sale of ¥2,000 billion in five-year government bonds was a success, with demand at nearly three times the supply. Five-year yields were down by 2.5 basis points to 1.215 percent, while two-year bonds were 2 basis points lower to 0.815 percent.

The Tokyo equities markets saw gains on Monday, despite investor caution ahead of a decision on US interest rates by the US Federal Reserve and the release of the latest Tankan survey from the Bank of Japan, both due soon. Also limiting gains was a significant decline in the consumer finance sector. The Nikkei 225 and the Topix index each added 0.7 percent on the session, to 16,527.99 and 1,627.97 respectively.

The consumer finance sector’s declines came after UBS forecast that lending would be down b y 30 percent in the next three years. Aiful dropped 3.4 percent to ¥3,660, while Takefuji fell 4 percent to ¥4,530 and Acom was 6 percent lower to ¥4,260.

In the tobacco sector, Japan Tobacco added 2.9 percent to ¥566,000, the third session of gains in a row for the company, as talk continued concerning its bid for UK tobacco company Gallaher.

Consolidator rumors sent the steel sector higher on the session even though some analysts see a successful hostile takeover of any Japanese steel company as only a slight possibility. Kobe Steel added 2.3 percent to ¥402, while Sumitomo Metal Industries gained 3.2 percent to ¥482. JFE was 3.8 percent higher to ¥5,720 and Nippon Steel was up 4 percent to ¥570.

The automobile manufacturing sector saw gains on a weakening yen. Toyota gained 1.4 percent to ¥7,140, while Honda Motor added 1.7 percent to ¥4,140.

Meanwhile the Osaka-listed games company Nintendo added 3.5 percent to ¥28,650 on data showing that sales of its Wii video game console are booming in the US.

Equities markets in Tokyo were lower on Friday after new data showed that core machinery orders in the private sector were lower than had been anticipated. The Nikkei 225 dropped 0.3 percent to 16,417.82, while the Topix index was 0.4 percent lower to 1,616.34

Reacting to the new figures on orders, camera-maker Nikon fell 1.6 percent to ¥2,460.

In the electronics sector, Sanyo was 3 percent lower to ¥159 as analysts said that it has dragged its feet in restructuring efforts after issuing a warning of profits last month. Sanyo was not helped by a recall of handsets by NTT DoCoMo due to faults in batteries manufactured by Sanyo. NTT was also lower, falling 1.7 percent to ¥177,000.

Domestically-focused sectors also saw declines. Among retailers, Seven & I Holdings was down 1.3 percent to ¥3,670. Meanwhile, Mizuho Financial Group dropped 0.6 percent to ¥828,000.

The tobacco sector saw gains after the news that UK cigarette manufacturer Gallaher said that it has received an approach. Japan Tobacco added 4 percent in a second day of gains to close at ¥550,000.

Tokyo equities markets were higher on Thursday even though the non-ferrous metals sector declined by 0.4 percent after commodities prices fell in the overnight hours. The Nikkei 225 added 0.6 percent to 16,473.36, while the Topix index gained 0.5 percent to 1,622.77.

The recent advances in the consumer finance sector seemed to be slowing down. Takefuji remained steady at ¥4,770 and Credit Saison was 0.9 percent higher to ¥4,300. Only Aiful managed a significant gain, adding 4.1 percent to ¥3,850.

Two companies made their trading debuts on the session, but both IPOs suffered losses on their first day. Independent investment research business Japaninvest debuted with an IPO price fo ¥150,000 but closed down to ¥135,000. Meanwhile, internet service provider Nifty’s IPO price was ¥210,000; it ended the session at ¥203,000.

In the telecommunications sector, results were mixed. KDDI added 0.3 percent to ¥784,000, but Softbank dropped 0.4 percent to ¥3,475 and NTT DoCoMo fell 1.1 percent to ¥180,000 on the news that it has lost subscribers for the first time.

Among companies that deal in non-ferrous metals, Toho Zinc dropped 0.4 percent to ¥979, while Sumitomo Metal Mining fell 0.7 percent to ¥1,524 and Mitsui Mining $ Smelting was 1.3 percent lower to ¥551.

The Nikkei 225 closed at 16,371.28 on Wednesday, a gain of 0.7 percent on the session and its highest close in a month. The Topix index was also higher, ending 1 percent higher to 1,615.17. Meanwhile, the Mothers index of small and mid-cap stocks was 1 percent higher to 1,116.51. The gains were largely on advances in domestic sectors.

The securities sector was 1.7 percent higher as a whole, helped by gains in stocks that have brokers convinced that individual investors will come back to the market. Nomura Holdings and Nikko Cordial each matched the sector by adding 1.7 percent on the session, to ¥2,080 and ¥1,477 respectively. Daiwa Securities gained 2.3 percent to ¥1,335.

Real estate also did well, with the sector adding 1.5 percent. Sumitomo Realty & Development was 1.6 percent higher to ¥3,790. Mitsui Fudosan added 1.8 percent to ¥2,835, bringing its gains since the middle of June to over 30 percent.

Electricity generators were up substantially. Tohoku Electric Power gained 2.3 percent to ¥2,845, while Kyushu Electric Power was 3 percent higher to ¥3,050 and Kansai Electric Power added 3.3 percent to ¥3,120.

The consumer finance sector was still on the rise. Jaccs gained 2.2 percent to ¥827, Takefuji added 2.6 percent to ¥4,770, Credit Saison was up 3.4 percent to ¥4,260, and Promise was 3.9 percent higher to ¥4,000.

Prices were down and yields higher on US Treasury bonds on new data showing that job growth in the private sector was better than expected in November. While reports from ADP Employer Services are not always an accurate gauge of non-farm payrolls, their report of 158,000 new jobs in the private sector, substantially higher than the 110,000 rise in non-farm new jobs expected when the Labor Department reports on Friday caught the attention of investors.

At midday in New York on Wednesday, two-year Treasury bonds were 5 basis points higher to a yield of 4,570 percent, while ten-year issues had added 2.9 basis points to 4.475 percent.

In the UK, gilts were mixed ahead of a new interest rate decision by the Bank of England, due Thursday. Investors didn’t pay as much attention to a report from the UK Treasury that reduced the expected issuance of new gilts in the fiscal year that ends next April by around £500 million. While two-year gilts were 1.3 basis points lower to 4.924 percent, ten-year gilts added 1.3 basis points to a yield of 4.506 percent.

Yields on Eurozone bonds were up ahead of an expected hike in interest rates by the European Central Bank on Thursday. The two-year Schatz was 2.6 basis points higher to 3.663 percent, while the ten-year Bund gained 1.9 basis points to 3.688 percent.

In Japan, the two-year Japanese government bond added 3 basis points to a yield of 0.840 percent, while five year-yields also gained 3 basis points to 1.230 percent. The ten-year JGB held steady at 1.650 percent.

The Tokyo equities markets were lower on Tuesday as investors worried about interest rates at home as well as the state of the US dollar and how export-focused business would be affected if it continues to decline. The Nikkei 225 fell 0.2 percent to 16,265.76. The Topix dropped even more, declining 0.6 percent to 1,598.89.

The worries of export-related sectors were illustrated by declines in the electronics sector, which dropped 0.5 percent as a whole. Sharp and Sony each fell 0.9 percent, to ¥1,910 and ¥4,510 respectively. Transport equipment fared even worse, as the sector dropped 0.7 percent.

Monday’s fall in oil prices benefited the airlines and shipping sectors. Shipping was up 2.7 percent as a whole. Nippon Yusen added 2.3 percent to ¥838, while Kawasaki Kisen gained 3 percent to ¥864 and Mitsui OSK was 3.1 percent higher to ¥1,091.

All Nippon Airways added 0.7 percent to ¥425 not only after oil prices fell but on the news that they are in merger talks with South Korea’s Asiana Airlines.

The lower oil prices, however, sent shares in Inpex 3.4 percent lower to ¥995,000.

In the retail sector, Fast Retailing was 5.7 percent higher to ¥10,910 after it said that same-store sales were up 8 percent in November over the same period last year, helped by cold weather clothing sales.

Tokyo’s major stock indices were nearly unchanged on Monday, with the Nikkei 225 slightly lower and the Topix index slightly higher. However, the Mothers index of small and mid-cap stocks continued its gains with as it gained 1.1 percent to 1,158.58. The Nikkei closed 0.1 percent lower to 16,303.59, while the Topix added .2 percent to 1,607.74.

Domestic sectors were generally higher. Real estate was 1.5 percent higher as a sector, with Mitsui Fudosan gaining 1.1 percent to ¥2,780 and Mitsubishi Estate adding 1.7 percent to ¥2,960.

The consumer finance sector was also higher as it continues to come back from the imposition of a government cap on the amount of interest lenders can charge their customers. Credit Saison added 2.2 percent to ¥4,190, while Promise gained 3.3 percent to ¥4,020. Takefuji was 3.5 percent higher to ¥4,740 and Aiful was up 5.4 percent to ¥3,880.

Nippon Steel added 1.3 percent to ¥528 when it said it is thinking about purchasing a stake in China’s largest steel company, Baosteel.

Nissan Motor was lower, dropping 1.4 percent to ¥1,393 after it said November sales were down in both the domestic market and in the United States.

Tech sectors also saw declines after the Nasdaq Composite dropped last week in the US. Semiconductor-related Advantest was 0.8 percent lower to ¥6,030. In the electronics sector, Sony dropped 1.5 percent to ¥4,550.

Yields on US Treasury bonds were up at midday in New York, trying to recover from last week when yields fell to near their lowest point this year. Yields were already so low, some analysts felt, that investors barely paid attention to new data from the National Association of Realtors that showed pending home sales were down 1.7 percent in October. The two-year Treasury bond was 0.8 basis points higher at noon on Monday, to a yield of 4.537 percent, while the ten-year bond had added 0.2 basis points to 4.440 percent.

In Europe, yields were mixed as some investors took profits and anticipated a meeting later in the week by the European Central Bank, when the Bank is expected by many to raise Eurozone interest rates to 3.5 percent. The two-year Schatz saw yields drop by 1.2 basis points to 3.601 percent, but the ten-year Bund added 0.7 basis points to a yield of 3.669 percent.

Yields on UK gilts, meanwhile, were lower ahead of a Bank of England meeting this week, at which the Bank is expected to keep interest rates at 5 percent. The two-year gilt was 2.3 basis points lower to 4.903 percent, while ten-year gilts were yielding 4.467 percent, a decline of 0.5 basis points.

In Japan, the ten-year Japanese government bond yielded 1.615 percent, a gain of 0.5 basis points ahead of an auction of ¥1,900 billion in ten-year bonds.

New data on the growth of the US economy helped the Tokyo equities markets to gains on Thursday. Both export-focused and domestic stocks benefited. The Nikkei 225 added 1.2 percent to 16,274.33, while the Topix index gained 1.5 percent to 1,603.03. The Mothers index of small and mid-cap stocks did ever better, ending 2.5 percent higher to 1,152.81.

Domestically, the securities and consumer finance sectors were higher. Consumer finance companies, which have had a bad year as the government made attempts to limit how much interest they can charge customers on loans, saw especially large gains. Credit Saison gained 6.5 percent to ¥4,080, while Takefuji added 9.7 percent to ¥4,630 and Aiful jumped 10.8 percent to ¥3,700.

The securities sector was 3.6 percent higher as a whole. Daiwa Securities was 3 percent higher to ¥1,327, while Nomura Holdings added 3.8 percent to ¥2,030 and Nikko Cordial gained 3.9 percent to ¥1,430.

With crude oil prices still rising, upstream oil company Inpex was 1.6 percent higher to ¥997,000.

Automobile manufacturers also managed advances. Toyota added 1.3 percent to ¥7,020, while Honda Motor gained 2.2 percent to ¥4,100. Meanwhile, construction machinery manufacturer Komatsu was 2.7 percent higher to ¥2,105.

Data showing that factory output in Japan was up a seasonally-adjusted 1.6 percent in October sent the Tokyo equities markets higher on Wednesday. The Nikkei 225 went back over the 16,000 mark, ending the session 1.4 percent higher to 16,076.20. The Topix index added 1.6 percent to 1,580.10. The best factory performance came in the automobile manufacturing and semiconductors sectors, both of which saw gains on the session.

In the semiconductors sector, Advantest gained 1.5 percent to ¥6,060, while Elpida Memory was 3 percent higher to ¥5,550. Meanwhile among carmakers, Nissan Motor was up 0.7 percent to ¥1,299 and Toyota added 1.5 percent to ¥6,930.

The securities sector also saw gains. Nomura Holdings gained 3.7 percent to ¥1,955, while Daiwa Securities added 4.4 percent to ¥1,288. Banks did well, too, with larger banks seeing bigger gains than smaller ones could manage. Sapporo Hokuyo, based in Hokkaido, was up 0.9 percent to ¥1,110,000, while Bank of Fukuoka, which has its center of operations in Kyushu, gained 1.1 percent to ¥856. Meanwhile, Mitsubishi UFJ was 2.1 percent higher to ¥1,450,000.

The transport sector was up after Credit Suisse hiked target share prices there. Nippon Yusen gained 2.9 percent to ¥804, while Kawasaki Kisen was up 3.1 percent to ¥828 and Mitsui OSK added 5 percent to ¥1,046.

In Hong Kong on Tuesday, the Hang Seng index dropped 2.9 percent to 18,639.53. The index fell 564.48 points, its worst one-day loss since the day after the September 11 attacks in the United States in 2001. The declines came after recent gains that sent the Hang Seng to an all-time closing high of 19,265.32 just last Thursday.

The worst of the declines came in the banking and real estate sectors. Also dropping substantially was exporter Li & Fung, which fell 4.1 percent to HK$22.05 on Wal-Mart’s statement of lower sales in November. Among mainland banks see significant losses were Commercial Bank of China and Bank of China, which were each 5.3 percent lower, to HK$3.76 and HK$3.56 respectively. China Construction Bank dropped 6.4 percent to HK$3.79. In the real estate sector, Sung Hung Kai dropped 4 percent to HK.95 and Cheung Kong was 5.1 percent lower to HK$90.55.

In Tokyo on Tuesday the equities markets were mixed, with the Nikkei225 down 0.2 percent to 15,855.26 while the Topix added 0. Percent to 2,555.11. The Mothers market of small and mid-cap stocks gained 1.5 percent to 1,118.55.

Export stocks were generally lower. In the automobile manufacturing sector, Toyota fell0.7 percent to ¥6,830 while Honda dropped 2.5 percent to ¥3,940. The electronics sector also saw losses. Sanyo Electric was 1.2 percent lower to ¥168 on the announcement that it will see losses for the third year in a row, while Sony dropped 1.7 percent to ¥3,970.

The real estate sector added 1.4 percent as a whole, with Sumitomo Realty & Development gaining 1.5 percent to ¥3,480. In the telecommunications sector, meanwhile, Softbank was up 2.4 percent to ¥2,370. Still, not all domestic sectors saw positive movement. The retail sector dropped 0.6 percent, with Aeon down 0.8 percent to ¥2,660.

In Tokyo on Monday equities markets saw gains, especially in domestically-focused stocks, as the Nikkei 225 added 1 percent to 15,885.38 and the Topix index ended the session 1 percent higher as well, at 1,553.01.

Export-focused stocks did not have as good a day of it. In the electronics sector, Sony dropped 0.7 percent to ¥4,570 after it said that eight of its best-selling models of digital cameras were defective, becoming unable to take pictures when exposed to heat and humidity. Sanyo, meanwhile, fell 5.6 percent to ¥170 as it announced another 2,200 employee layoffs and said it would end the fiscal year with losses for the third year in a row on declining mobile phone sales both in the US and domestically.

Automobile manufacturers saw declines as well. Toyota was 0.2 percent lower to ¥6,880, while Honda Motor was down 0.5 percent to ¥4,040.

Some of the domestic stocks that saw gains on the session were helped by broker upgrades. Fixed-line telecommunications company NTT added 2.3 percent to ¥578,000 on an increased target share price from Morgan Stanley. All Nippon Airways was 3.2 percent higher to ¥423 on an upgrade from Nikko Citigroup, which cited strong demand for international flights. Pharmaceutical company Eisai gained 3.3 percent to ¥6,240 on both a ratings upgrade and a raised target share price from UBS.

The Tokyo equities markets were substantially higher on Wednesday. The Nikkei 225 added 1.1 percent to 15,914.23 and the Topix index gained 1.3 percent to 1,552.87, while the Mothers index of small and mid-cap stocks was up 6 percent to 1,069.72 following multi-year lows reached earlier in the week. The gain in the Mothers index came as investors came to believe that stocks listed there have fallen enough to qualify as bargains.

Gains in the prices of metals took the non-ferrous metals sector 4.1 percent higher, with Sumitomo Metal Mining adding 3.4 percent to ¥1,414. Oil prices that were up Tuesday due to bad weather in Alaska sent Inpex 4.6 percent higher to ¥937,000.

Domestic sectors saw gains as well. The banking sector was up 2 percent as a whole, with Mitsubishi UFJ adding 2.2 percent to ¥1,420,000. Seven & I gained 2.3 percent to ¥3,500 in a retail sector that was 2.8 percent higher as a whole. The real estate sector was up 3 percent, with Mitsui Fudosan adding 2.1 percent to ¥2,620.

Telecommunications and internet company Softbank saw a gain of 8.4 percent on the session, to ¥2,320.

Among losers on the day was electronics maker NEC, dropping 5.6 percent to ¥557 on a report that showed losses in the first half and on a 64 percent downward revision in its prediction for the full year.

Tokyo equities markets moved very little on Tuesday after Monday’s declines. Banks were still weak, but the consumer finance and electronics sectors saw gains. The Nikkei 225 added 0.1 percent to 15,734.14, while the Topix index dropped 0.1 percent to 1,532.95.

Bridgestone dropped 1.6 percent to ¥2,405 in reaction to Monday’s announcement by the tire maker that it is putting off its earnings target by another two years and will not reach the goal of 5 percent net profit margins until at least 2010.

Banks were hurt by data showing that core operations were hurt by lending margins that had tightened. Mizuho Financial was 2.2 percent lower to ¥805,000.

On the other hand, consumer finance were higher as some investors and hedge funds have begun to consider them to be bargains. Within the sector, Takefuji added 1.1 percent to ¥4,010.

The shipping sector did will on lower oil prices overnight, with Nippon Yusen gaining 2.1 percent to ¥768. The drop in oil prices did not help oil company Inpex, which dropped 0.7 percent to ¥896,000.

Tech sectors saw gains on the session, with Tokyo Electron adding 0.4 percent to ¥8,600. Among semiconductors, Advantest was 1.4 percent higher to ¥5,950.

Yields were up on government bonds on Tuesday as trade remained light ahead of the four-day Thanksgiving Day weekend in the United States. US Treasury bonds were nearly unchanged by midday in New York, with the two-year bond adding 0.4 basis points to a yield of 4.783 percent, while ten-year issues were even, yielding 4.599 percent.

In the Eurozone, the two-year Schatz was 4.1 basis points higher, yielding 3.699 percent. The ten-year Bund gained 0.5 basis points to 3.718 percent.

Meanwhile, in the UK, a new manufacturing survey from the Confederation of British Industry showed a stronger than expected recovery in the sector. While the numbers were still in negative territory, order books were up to -6 in November after having been at -20 in October. While some analysts maintained that the recovery was not as strong as it seemed, others see the new data as supporting another rise in UK interest rates.

The two-year gilt added 1.1 basis points to yield 4.974 percent late in the London session. The 10-year gilt was up 1.3 basis points to 4.552 percent.

Yields were also up in Japan after an official of the Bank of Japan was quoted as saying that there is still a possibility of an interest rate hike in December. The two-year Japanese government bond was 2 basis points higher to 0.800 percent.