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JGBs continue to suffer ahead of super-long 30-year auction, May household spending

The Japanese government bonds closed lower Tuesday as investors wait to watch the country’s super-long 30-year auction, scheduled to be held on July 4 by 03:35GMT and the household spending data for the month of May, due on the same day by 23:30GMT.

At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, improved 14 basis points to -0.144 percent, the yield on the long-term 30-year remained tad higher at 0.371 percent and the yield on short-term 2-year also improved to -0.216 percent.

Wall Street closed higher overnight, with S&P500 at fresh record highs and the 10-year UST bond yield up slightly to 2.03 percent, whereas the USD outperformed on the back of a more resilient manufacturing ISM print, OCBC Treasury Research reported.

On one hand, US president Trump said that trade talks with China has already commenced, on the other hand, the US is mulling more tariffs to the US$4 billion of EU goods over aircraft subsidies. Separately, OPEC+ will extend production cuts into March 2020, the report added.

Meanwhile, the Nikkei 225 index closed flat at 21,734.84, while at 07:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -33.48 (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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