JGBs gain slightly after North Korea launches missile test again

The Japanese government bonds slightly gained Monday as investors poured into safe-haven assets after North Korea launched three short-range ballistic missiles from its east coast into the sea, beginning at 5:40 p.m. EST Friday over a period lasting an hour, according to the U.S. Pacific Command.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slipped 1/2 basis point to 0.01 percent, the yield on long-term 30-year hovered around 0.84 percent and the yield on short-term 2-year traded flat at -0.15 percent by 05:50 GMT.

Yoshihide Suga told reporters the missiles early on Saturday did not fall into Japan’s territorial waters or the coastal 200-mile economic zone. Japan has previously deployed missile interceptors after North Korea threatened to fire projectiles over Japan toward the US territory of Guam. However, Japan’s top government spokesman says there is no direct threat to Japan following North Korea’s latest test-launch of three short-range missiles.

In the latest launch, the US Pacific Command says two of the North’s missiles failed in flight after an unspecified distance, and another appeared to have blown up immediately. South Korea’s military said several short-range projectiles had been fired from Kangwon province, travelling north-east for about 250km (155 miles) before landing in the sea.

Meanwhile, Japan’s Nikkei 225 traded 0.02 percent higher at 19,457.00 by 05:50GMT, while at 05:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at -67.82 (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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