JGBs fall tracking U.S. Treasuries ahead of BoJ Governor Kuroda’s speech, April industrial production

The Japanese government bonds closed lower Tuesday tracking a similar movement in the U.S. Treasuries at the close of last Friday amid improvement in risk sentiments as the country prepares for a trade talk with U.S. President Donald Trump post the Japan elections in July.

Also, investors will be focussing on the Bank of Japan (BoJ) Governor Haruhiko Kuroda’s speech, scheduled to be held on May 29 and the country’s industrial production data for the month of April, due on the following day by 23:50GMT for further direction in the debt market.

At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, remained tad higher at -0.070 percent, the yield on the long-term 30-year edged 1/2 basis point higher to 0.505 percent and the yield on short-term 2-year hovered around -0.154 percent.

The Bank of Japan conducted a regular JGB-buying operation on Monday, offering to purchase JPY750 billion ($6.85 billion) of one- to five-year bonds and JPY200 billion of 10- to 40-year debt, Reuters reported.

Meanwhile, the Nikkei 225 index closed 0.34 percent higher at 21,188.00, while at 06:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bullish at 147.77 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex