Japanese bonds edged lower on Tuesday after Bank of Japan cuts its purchases of long-term bonds in its today open market operation. Investors in world’s third-largest economy would now look ahead to 10-year bond auction, scheduled to be held on January 10 at 09:15GMT.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1 basis point to 0.069 percent, the yield on new long-term 40-year also climbed 2 basis points to 0.997 percent and the yield on short-term 2-year up 1/2 basis point at -0.133 percent by 04:20 GMT.
The BoJ bought JPY190 billion of 10 - 25 Year JGBs in today's operation, lower compared to 200 billion yen seen in its last time operation. Also, the central bank purchased JPY80 billion worth of bonds of more than 25-year of maturity, less than 90 billion from the last operation.
In the United States, Treasuries held relatively steady to open the week during a relatively quiet session light on data of great significance. On the data front, markets saw considerable gains in consumer credit, (increasing +USD28.0 billion in November, bolstered by solid gains in both revolving and non-revolving activity).
With respect to Fed speakers, markets received commentary from a number of sources. Providing a dovish angle, Atlanta Fed President Bostic said that he remained supportive of the Fed continuing along its gradual path, though cautioned it should not necessarily come in the form of 3-4 rate hikes per year.
In the world largest economy, markets now look ahead to a relatively quiet session on Tuesday, highlighted by NFIB small business optimism and JOLTs bob openings, followed later by a 3-year Note auction.
Meanwhile, Japan’s Nikkei 225 traded 0.63 percent higher at 23,865 by 04:30, while at 04:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at -36.67 (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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