JGBs continue mixed trading ahead of Q4’18 GDP data amid lingering hopes of U.S.-China trade deal

The Japanese government bonds continued to trade mixed towards the end of Asian session Wednesday, as investors await the country’s gross domestic product (GDP) for the fourth quarter of this year, scheduled to be released today 13 by 23:50GMT amid a surge in global risk sentiments following hopes of a trade deal between the U.S. and China.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, slipped nearly 1 basis point to -0.008 percent, the yield on the long-term 30-year jumped 2 basis points to 0.625 percent while the yield on short-term 2-year plunged 16-1/2 basis points to -0.164 percent by 05:30GMT.

Asian markets are trading higher, especially Nikkei 225, which jumped over 3.5 percent in previous two trading sessions on US -China trade deal hopes.

US market closed higher with the S&P500 index having broken a major resistance 200- day MA at 2,744 on overall investor optimism.

The dollar has gained sharply yesterday against the Japanese yen and jumped more than 70 pips from low. Weakness in the yen has boosted demand for exporters such as automakers and machinery makers.

Meanwhile, the Nikkei 225 index traded 1.45 percent higher at 21,168.00 by 05:35GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -47.26 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex