JGBs narrowly mixed after BoJ trimmed 2019 inflation outlook amid global growth concerns

The Japanese government bonds remained narrowly mixed towards the end of trading week Thursday after the Bank of Japan (BoJ) trimmed the country’s 2019 inflation outlook at its monetary policy meeting held yesterday amid concerns over global growth following statistics revealed by the International Monetary Fund (IMF) off late.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, rose 1 basis point to 0.009 percent, the yield on the long-term 30-year note hovered around 0.664 percent while the yield on short-term 2-year plunged 16 basis points to -0.159 percent by 05:30GMT.

In the BoJ’s quarterly outlook report, the bank lowered its forecast for consumer prices excluding fresh food — a gauge known as core inflation — to rise by between 1 percent and 1.3 percent year on year in 2019, down from a range of 1.5 percent to 1.7 percent it outlined in October, besides, keeping interest rates on hold at -0.1 percent by a 7-2 vote.

After the International Monetary Fund (IMF) announced that it had revised down its estimates for global growth on Monday, markets have remained on edge as concerns surrounding key topics continue to rumble on. Aside from the uncertainty surrounding Brexit, investors in the U.S. continue to monitor developments between China and the U.S., in regards to trade, CNBC reported.

Meanwhile, the Nikkei 225 index closed tad lower at 20,581.50 by 05:35GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -12.72 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex