JGBs range-bound on caution ahead of September trade balance data

The Japanese government bonds remained range-bound Wednesday as investors remained cautioned ahead of the country’s trade balance data for the month of September, scheduled to be released today by 23:50GMT. Also, Japan’s election over the weekend will add further direction to the country’s debt market.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose nearly 1 basis point to 0.07 percent, the yield on long-term 30-year also tad up at 0.88 percent and the yield on short-term 2-year traded flat at -0.14 percent by 03:35 GMT.

According to a Reuters corporate survey, Japanese companies overwhelmingly want Prime Minister Shinzo Abe's ruling coalition to stay in power in this Sunday's national election but about two-thirds want it to lose seats.

Many companies in the survey expressed concern that a big election win would encourage Abe to invest his energy in a long-held ambition to revise Japan's pacifist constitution, at the expense of economic policy. However, some 48 percent wanted his bloc to obtain a smaller majority, while 20 percent hoped the ruling camp would retain the 323 seats it held before the lower house was dissolved last month. 7 percent wanted the ruling bloc to win more seats.

Meanwhile, Japan’s Nikkei 225 rose 0.10 percent to 21,356.50 by 04:35GMT, while at 04:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at -21.91 (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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