Japanese move fails to impress markets

JAPAN’S commitment to buy eurozone bonds this month to help Europe cope with the continuing debt crisis failed to impress the markets yesterday and the cost of 10-year Portuguese bonds stayed close to the recent high of 7%.

Speaking in Tokyo after yesterday’s cabinet meeting Finance Minister Yoshihiko Noda said his government is considering buying about 20% of euro bonds to be jointly issued later this month to raise funds to support Ireland.

Japan would use its existing euro reserves to pay for the debt, Noda said.