JGBs end session flat ahead of super-long 30-year auction amid otherwise silent trading

The Japanese government bonds ended Monday’s Asian session on a flat note ahead of the country’s super-long 30-year auction, scheduled to be held on May 14 by 03:35GMT, amid an otherwise silent day that witnessed data of little economic significance.

At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, remained tad lower at -0.047 percent, the yield on the long-term 30-year hovered around 0.540 percent and the yield on short-term 2-year traded nearly flat at -0.159 percent.

The US-China trade talks in Washington ended on Friday with what looks like a deadlock. The two sides both sent signals of cautious optimism but the underlying development suggests a bigger crisis in the negotiations, Danske Bank reported.

The trade teams have agreed to meet again in Beijing but not when. The US has given China a month to make concessions or otherwise face tariffs on all imports. In this case the tariffs could come into force in early August, the report added.

Meanwhile, the Nikkei 225 index closed -0.79 percent lower at 21,176.24, while at 06:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bullish at 113.64 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex