Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
The Japanese 10-year government bonds hit a fresh all-time low of minus 0.158 percent on Monday, following global debt prices as investors remain uncertain about the global economic outlook and the near-term path of BoJ and US interest rates. Also, UK decision on whether to remain in the European Union on June 23 is also weighing on investors’ minds.
The yield on the benchmark 10-year bonds, which moves inversely to its price fell 1 basis points to -0.158 percent, yield on super-long 40-year bonds nearly dipped 2-1/2 basis point to 0.290 percent, yield on 15-year bonds nearly tumbled 1 basis point to 0.003 percent (likely to dip below zero soon) and the yield on short-term 2-year bonds hovered around -0.270 percent mark by 05:40 GMT.
In the global debt market, the benchmark 10-year US Treasury note yield marching lower towards 1.50 percent mark (fell nearly 2 basis points to 1.621 percent). The German 10-year bund yields move towards zero (closed at 0.019 percent on Friday), after testing its 2015 low of 0.05 percent last week.
Moreover, the JGBs have been closely following developments in oil markets because of their impact on inflation expectations, which are well below the Bank of Japan's target. Today, crude oil prices fell below $50 in a week as US drilling data showed another uptick, reinforcing views that the recent rally may restrain the rebalancing in oil markets. The International benchmark Brent futures fell 0.95 percent to $50.06 and West Texas Intermediate (WTI) dipped 1.12 percent to $48.52 by 05:00 GMT.
Last week, Bank of Japan Deputy Governor Nakaso said that Japan's economy is expected to expand moderately and he expects 2 percent inflation target to be hit in fiscal 2017/18. He further added that it takes some time for the effect of monetary policy to appear in economy and there is absolutely no change in BoJ's commitment to hit 2 percent inflation target. the BoJ will take additional steps if needed to hit price goal and no easing in April does not rule out any further action, he added.
Bold easing is necessary to put economy on track for sustainable growth and some indicators suggest a fall in bond market liquidity since the start of the year, he added.
In addition, Bank of Japan Governor Haruhiko Kuroda will make a decision on stimulus on June 16 and the Federal Open Market Committee (FOMC) gathering scheduled for June 14-15. The U.K. decision on whether to remain in the European Union on June 23 is also weighing on investors’ minds.
The Bank of Japan is expected to remain on hold at its monetary policy meeting scheduled on June 16. This is despite the need for further policy easing, as suggested by recently released economic data. Please see for more details – http://www.econotimes.com/BoJ-likely-to-stay-pat-on-rising-global-uncertainties-220757
Meanwhile, the benchmark Nikkei 225 index trading down -3.15 percent at 16,078.08, and the broader Topix index trading lower 3.14 percent to 1,228.98 points by 05:40 GMT.
