JGB 10-year yield hovers near 1-week high tracking weakness in U.S. Treasuries

Japanese government bonds slumped on Thursday after the U.S. 10-year treasury yield rose slightly for the third consecutive day overnight. Investor sentiment improved overnight, resulting in a rebound in global share markets and a lift in U.S. bond yields.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 13 basis points to 0.128 percent, the yield on the long-term 30-year note traded 2-1/2 basis points higher at 0.895 percent and the yield on short-term 3-year traded 1 basis point up at -0.104 percent by 05:00GMT.

On Wednesday, the Bank of Japan (BoJ) left its short-term interest rates unchanged at 0.1 percent and its long-term interest rates steady at around zero percent yesterday. The BoJ slightly trimmed its inflation forecasts and continued to indicate inflation will remain below its 2 percent target until at least early 2021.

In the United States, private payrolls increased by 227k in October, after a revised rise of 218k in September, according to the ADP survey. It was the largest rise in jobs in eight months. This pushed the U.S. 10-year treasury yield to 3.14 percent, up from 3.12 percent.

It will be a quiet data day in Japan.

Meanwhile, the Nikkei 225 index traded 0.70 percent lower at 21,744.00 by 05:10GMT, while at 04:00GMT, the FxWirePro's Hourly JPY Strength Index remained slightly bearish at -75.59 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex