JGBs remain narrowly mixed in muted trading ahead of July national core CPI, FOMC meeting minutes

Japanese government bonds remained narrowly mixed Tuesday amid a muted trading session that witnessed data of little economic significance. Investors will now remain focussed on the country’s national consumer price inflation (CPI) data for the month of July, besides, the Federal Open Market Committee’s (FOMC) August monetary policy meeting minutes, due on August 22 for detailed direction in the debt market.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, hovered around 0.092 percent, the yield on the long-term 30-year note fell 2 basis points to 0.83 percent and the yield on short-term 2-year remained tad higher at -0.123 percent by 05:20GMT.

Wall Street rose yesterday, buoyed by optimism about M&A (as PepsiCo agreed to buy SodaStream International and Tyson Foods is buying Keystone Foods) while the USD slipped ahead of the Jackson Hole symposium, and the UST bonds gained with the 10-year yield lower by 4 basis points to 2.82 percent (lowest since July 6) awaiting the impending US-Sino trade talks and the next USD16 billion of additional US tariffs on Chinese imports due to kick in on August 23, as well as the FOMC minutes tomorrow.

Meanwhile, the Nikkei 225 index rose 0.19 percent to 22,245.50 by 05:25GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -26.17. For more details, visit http://www.fxwirepro.com/currencyindex