Traders of credit default swaps are indicating that the risk of default on corporate and sovereign bonds in Asia, including Japan, has declined. "This drop is not temporary," said Yasuhiro Matsumoto, senior credit analyst at Shinsei Securities. "The U.S. employment report was better than expected, and stocks have been rebounding in developed economies, showing fundamentals are recovering. The index can go down to 80 basis points for now."

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