JGBs flat trend lower in muted session ahead of September trade balance data

The Japanese government bonds trended lower Tuesday as investors remained sidelined in any major trading activity ahead of the country’s trade balance data for the month of September, scheduled to be released on October 18 by 23:50GMT. Also, Japan’s election over the weekend will add further direction to the country’s debt market.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose nearly 1 basis point to 0.07 percent, the yield on long-term 30-year also tad up at 0.88 percent and the yield on short-term 2-year traded flat at -0.14 percent by 03:35 GMT.

The world's third-largest economy is abuzz with election hype as it gears up for national polls on Sunday, with media surveys predicting a big win for the ruling Liberal Democratic Party (LDP) despite the unpopularity of Prime Minister Shinzo Abe.

At stake is the country's ties with the United States under its bilateral alliance. Mr. Abe is arguably the world leader chummiest with US President Donald Trump, who is due to visit Tokyo in 21/2 weeks, and both men have been in lockstep over issues such as North Korea.

Also at stake is Abe's trademark "Abenomics" mix of economic policies, as well as Japan's trade policy. It has taken the lead in the 11-nation Trans-Pacific Partnership pact - which Singapore is a part of - after the US pulled out.

Meanwhile, Japan’s Nikkei 225 rose 0.17 percent to 21,292.50 by 03:55GMT, while at 03:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at 7.62 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest