The time to sell debt is approaching. The production data showed Japan's economy is expanding and it may give the central bank more confidence to change policy. Bonds will probably stay heavy.

There's speculation that the upward trend will continue for economic growth and stocks. There's no need rush and buy bonds amid the risk that rates will rise.

Nakagawa's comment on monetary policy will probably keep bonds strong. Government pressure on the Bank of Japan not to change policy will put upward pressure on debt.

European debt is pricing in a perennial recession. Sooner or later the European economy will revive and then we will see bond prices fall. On a relative value basis, we much prefer to hold Singapore bonds.

The good news is it drives the economy. The bad news is it adds to the household debt burden.

Any economy that is built on uncontrolled debt will eventually crash. [On US Economy Crisis]