JGBs mixed after September household spending deteriorates; BoJ Summary of Opinions in focus

The Japanese government bonds traded mixed Tuesday after the country’s household spending deteriorated during the month of September and investors will now be eyeing the Bank of Japan’s (BoJ) Summary of Opinions, scheduled to be released later in the week for further direction in the debt market.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, jumped 13 basis points to 0.131 percent, the yield on the long-term 30-year note hovered around 0.889 percent and the yield on short-term 2-year slumped nearly 13 basis points to -0.128 percent by 05:40GMT.

According to a report from Nasdaq, "Japan's household spending slumped in September from a year earlier, government data showed on Tuesday, falling well short of economists' expectations and suggesting a slow recovery after an earthquake and typhoons hit consumption".

Data released by Japan’s Statistics Bureau showed that the surprise 1.6 percent annual decline in household spending in September was the exact opposite of the 1.6 percent annual increase forecast by economists, and follows a 2.8 percent yearly gain in August.

Meanwhile, the Nikkei 225 index jumped 1.17 to trade at 22,133.50 by 05:50GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bearish at -119.879 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex