JGBs remain flat at close amid silent session ahead of 30-year auction, April industrial production

The Japanese government bonds closed flat Wednesday amid a silent Asian trading session that witnessed data of little economic significance as investors wait to watch the country’s super-long 30-year auction, scheduled to be held on June 13 by 03:35GMT and industrial production data for the month of April, due on the following day by 04:30GMT for further direction in the debt market.

At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, hovered around -0.112 percent, the yield on the long-term 30-year edged tad lower to 0.351 percent and the yield on short-term 2-year also remained nearly stable at -0.193 percent.

In other news, United States President Donald Trump has confirmed that he is personally holding up the trade deal until the G20 meeting (and China returns to terms it had reportedly reneged on) but so far, Chinese authorities have not confirmed the Xi-Trump meeting, OCBC Treasury Research reported.

"Positive EM/FX equities from overnight (Chinese stocks boosted by further selective accommodation via infrastructure spending) and a heavy USD-CNH may give the USD-Asia a weighted posture on an intraday basis. Beyond the immediate horizon however, USD-Asia may be trapped between a softer USD profile on one hand, and weaker macro prints (note China CPI prints in-line with expectations) and escalating trade tensions on the other. Overall, we think this will leave the USD-Asia largely flat for now," the report added in its comments.

Meanwhile, the Nikkei 225 index closed -0.30 percent lower at 21,140.00, while at 06:00GMT, the FxWirePro's Hourly JPY Strength Index remained slightly bearish at -70.58 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex