JGBs mixed in quiet trading ahead of December national CPI, BoJ Governor Kuroda’s speech

The Japanese government bonds remained mixed on the second trading day of the week Tuesday amid a quiet session ahead of the country’s national consumer price inflation (CPI) data and Bank of Japan (BoJ) Governor Kuroda’s speech, both scheduled to for 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, rose 1 basis point to -0.011 percent, the yield on the long-term 30-year note hovered around 0.705 percent and the yield on short-term 2-year slumped 15 basis points to -0.149 percent by 05:40GMT.

The disappointing Chinese trade data, which pointed to sharper-than-expected weakness in the Chinese economy and reinforced the downside risks to its 2019 growth and the need for continued policy reinforcement, weighed on many Asian markets yesterday.

Fed’s vice-chair Clarida opined that “a lot has really happened since the first week of December” and “some of the global growth data have been softening”, hence the Fed can be “very patient”, albeit he noted that “I don’t see a recession on the horizon”. 

Meanwhile, the Nikkei 225 index closed nearly 1 percent higher at 20,537.50 by 05:45GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -51.36 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex