Bonds are on the downswing in Japan as stocks surge, Bloomberg reports. The Nikkei 225 Stock Average is at its highest point in nearly a year, reinforcing speculation that the world’s second-largest economy may be on its way to recovery.

However, news was not as good for bonds. Some investors have been moving their money into equities as bonds have fallen for all except one day in the last eight trading days. Adding to bonds’ woes has been the recent volatility in the market as well as a report indicating Japanese machinery orders unexpectedly rose in May . Goldman, Sachs & Co. raised its prediction for Japanese economic growth next year to 1.1%, a significant boost from the previous projection of 0.2%.

Those in the industry said that the combination of improving investor sentiment, the recent stock rally and a decrease in demand for debt securities will lead to a shift away from bonds.

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