JGBs gain after 10-year auction turns up softer than previous; host of 2-tier data in focus

The Japanese government bonds gained Tuesday after the country’s 10-year auction was perceived softer than the prior auction, with the yield rate bid at 0.03 percent, compared to 0.061 percent in the previous auction. Also, investors are looking forward to the release of a host of two-tier economic data, scheduled for release through this week.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell nearly 1-1/2 basis points to 0.03 percent, the yield on the long-term 30-year note also slumped 1-1/2 basis points to 0.72 percent and the yield on short-term 2-year traded tad lower at -0.13 percent by 04:50 GMT.

Global risk appetite was clearly on the backburner at the start of 2Q18 with the overnight tech sell-off in Wall Street, amid brewing headwinds over China’s retaliatory moves against the US’ steel and aluminium tariffs.

Fed’s Harker (non-voter) opined that “on the heels of a strengthening outlook, therefore, I see two additional rate hikes this year as appropriate” while Bostic (voter) also said, “my forecast had three moves for this year”.

Meanwhile, the Nikkei 225 index traded 0.43 percent lower at 21,296.00 by 04:55 GMT, while at 04:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 70.35 (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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