The Japanese government bonds slumped after Reuters’ Tankan rose unexpectedly in Q3. This shows that the big manufacturers have more confidence in business conditions than they have had for a decade as global demand adds momentum to economic recovery.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, more than 1 basis point to 0.076 percent, the yield on long-term 30-year rose nearly 1 basis point to 0.88 percent and the yield on short-term 2-year traded 1/2 basis point higher at -0.11 percent by 04:55 GMT.
Big manufacturers have more confidence in Japan's business conditions than they have had for a decade as global demand adds momentum to economic recovery, a closely watched central bank survey showed on Monday.
The upbeat data supports Bank of Japan policymakers' hopes that a sustained economic recovery will boost wages and household spending, helping to accelerate inflation towards the central bank's ambitious 2 percent target.
The BoJ's quarterly "tankan" survey showed the headline index for big manufacturers' sentiment stood at plus 22 in September, handily exceeding a median market forecast of plus 18 to mark the highest level since September 2007. It was higher than plus 17 seen in the previous survey in June, posting a fourth straight quarter of improvement, the tankan survey showed on Monday.
Meanwhile, Japan’s Nikkei 225 traded 0.11 percent higher at 20,378.50 by 04:55GMT, while at 04:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at -45.31 (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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