The Japanese government bonds continued to trade in a steady mode on the second trading day of the week Tuesday amid a muted session that witnessed data of little economic significance.
Investors will now be eyeing the country’s retail sales and industrial production data for the month of December, scheduled to be released today and n January 30 by 23:50GMT respectively.
The yield on the benchmark 10-year JGB note, which moves inversely to its price, remained tad higher at 0.003 percent, the yield on the long-term 30-year note flat at 0.652 percent while the yield on short-term 2-year plunged 15-1/2 basis points to -0.155 percent by 05:30GMT.
Global risk appetite took a dive yesterday on news that the US Department of Justice has announced criminal charges against Chinese company Huawei and its CFO Meng Wanzhou (currently under arrest in Canada), OCBC Treasury Research reported.
Wall Street closed lower amid earnings disappointments and/or guidance from corporates like Caterpillar and Nvidia, whilst oil prices also retreated, albeit the 10-year UST bond yield was relatively little changed at 2.75 percent.
Market focus ahead will be the US-China trade talks between Chinese Vice Premier Liu He and US Trade Representative Robert Lighthizer, with president Trump expected to make the meeting as well according to Treasury Secretary Mnuchin, the report added.
A WSJ report suggested that China will offer a big increase in US farm purchases and energy, coupled with modest reforms in industrial policies. Asian markets may tread cautiously this morning as investors ponder the implications of the Huawei case on ongoing US-China trade negotiations, OCBC further noted in its latest Daily Treasury Outlook report.
Meanwhile, the Nikkei 225 index remained tad higher at 20,652.50 by 05:35GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bearish at -114.92 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex


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