JAPANESE bonds guru Shigenobu Suzuki recommends investors buy into Japanese long bonds. Mr Suzuki, deputy general manager of Nikko Securities' bond trading department, said the present term structure of interest rates was rather steep, so there was some scope for long spot rates to drop until economic recovery got under way. At the Asia-Pacific Issuers and Investors Forum at the Grand Hyatt yesterday, Mr Suzuki said he did not expect the Japanese economy to recover quickly, and consequently the downward trend in interest rates would continue. Debt market conditions in Japan had changed considerably since the country's economic bubble had burst, he said. ''The situation is very different from that in 1987, and financial institutions cannot take an active investment stance aiming at capital gain by high-risk dealing,'' said Mr Suzuki. ''However, the situation seems to be changing gradually. The recovery of the economy, originally forecast for this spring, has been delayed. ''Financial institutions cannot expand their investments in loans due to the burden of huge bad debts. ''Also, with corporate earnings not expected to recover soon due to corporate restructuring, stock prices are not expected to rebound soon. ''Financial institutions are not investing in stocks. Meanwhile, short-term interest rates remain low. ''With this background, simply by a process of elimination, investment will likely be concentrated on the bond market, and in particular on the benchmark bond,'' said Mr Suzuki. The Japanese yen bond market has become the world's second largest bond market after that in the US dollar, accounting for 19.4 per cent of total outstanding bonds worldwide in 1992.