JGBs plunge on softer safe-haven demand, Nikkei 225 hovers near 4-week high

The Japanese government bonds plunged during early Asian trade Tuesday on increasing risk appetite of investors after tensions eased, concerning worries over North Korea’s missile attack, which did not happen over the weekend and as the strength of Hurricane Irma weakened as well.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, jumped nearly 3 basis points to 0.03 percent, the yield on long-term 30-year climbed 2 basis points to 0.83 percent and the yield on short-term 2-year traded 1-1/2 basis points higher at -0.13 percent by 04:45 GMT.

A global equity index and the S&P 500 surged to record highs on Monday, spurred by relief that Hurricane Irma weakened to a tropical storm and that North Korea’s anniversary celebrations on the weekend passed without a new missile test.

Demand slipped for safe-haven assets as investors took on more risk after Irma caused less damage than initially expected and North Korea marked its founding on Saturday without new provocations.

Meanwhile, Japan’s Nikkei 225 jumped 1.00 percent to 19,739.50 by 03:50GMT, while at 03:00GMT, the FxWirePro's Hourly Yen Strength Index remained slightly bearish at -98.04 (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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