JGBs remain tad lower on expectations of rise in August national CPI

Japanese government bond prices remained tad lower during late Asian session Thursday as investors are hoping to see a slight rise in the country’s consumer price inflation (CPI) figures, due to be released today for further direction in the debt market.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, hovered at 0.119 percent, the yield on the long-term 30-year note rose 1/2 basis point to 0.857 percent and the yield on short-term 2-year also remained tad higher at -0.103 percent by 05:10GMT.

Japan’s national consumer price inflation (CPI) for the month of August is expected to rise to 0.9 percent, up from 0.8 percent seen in July.

Risk appetite stayed buoyant amid US stocks approaching fresh records, while the 10-year treasury yields rose for the second day as recent trade barbs were seen to be less severe than feared. Amid the tensions, note that China plans to implement a 10 percent tariff on US LNG imports, though Chinese authorities stressed that it will not weaken the RMB to boost trade competitiveness, OCBC Bank reported in its latest Daily Treasury Outlook.

Meanwhile, the Nikkei 225 index rose 0.19 percent to 23,732.50 by 05:20GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained slightly bearish at -96.26 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex