10-year JGB yields highest since January 16 on improved risk appetite; Nikkei 225 hits over 2-week high

The Japanese 10-year government bond yields climbed highest since January 16, as investors moved away from safe-haven instruments on higher risk appetite in crude oil and equities. Also, investors are eyeing the release of December consumer price inflation on Friday.

The benchmark 10-year bond yield, which moves inversely to its price, edged up nearly 2 basis points to 0.08 percent, while the long-term 30-year bond yields rose nearly 3 basis points to 0.84 percent and the yield on the short-term 2-year note also surged nearly 3 basis points to -0.19 percent by 06:40 GMT.

Asian stocks rose Thuesday amid improved risk sentiment from both regional economic data and overnight gains in the U.S. for both stocks and the dollar. The benchmark Nikkei 225 hit over 2-week high, tracking wall Street gains.

Also, investors are curiously eyeing the release of December consumer price inflation data, scheduled for Friday, besides, the Bank of Japan’s (BoJ) first 2-day monetary policy meeting 2017, scheduled to be held on January 31.

Lastly, we foresee that the central bank will remain committed to hold its 10-year JGB yields near zero, while keeping interest rate steady at -0.10 percent.

Meanwhile, Japan’s Nikkei 225 closed 1.81 percent higher at 19,403 while at 7:00GMT, the FxWirePro's Hourly Yen Strength Index remained slightly bearish at -82.88 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex