JGBs flat in mild trading session after Trumpcare rout; investors eye February CPI data

The Japanese government bonds remained flat in mild trading session Monday, following a slight global rout as concerns mounted over the United States President Donald Trump's inability to overhaul the US healthcare system.

The benchmark 10-year bond yield, which moves inversely to its price, hovered around 0.05 percent, the long-term 30-year bond yields also remained flat at 0.83 percent and the yield on the short-term 2-year note also remained relatively unchanged at -0.25 percent by 06:40 GMT.

Further, Trading volumes were low as investors remained reluctant to stake out positions ahead of the looming March 31 domestic fiscal year-end. However, JGB futures did manage to eke out modest gains following the slump in Tokyo stocks as risk sentiment was hurt by Trump's setback.

Lastly, markets will now be focusing on the February consumer price inflation data, scheduled to be released on March 31 for detailed direction in the debt market.

Meanwhile, Japan’s Nikkei 225 closed 1.44 percent lower at 18,985.59, while at 06:00GMT, the FxWirePro's Hourly Yen Strength Index remained highly bullish at 176.10 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex