JGBs slide as risk appetite improves despite Trump’s suspected involvement in campaign finance crimes

Japanese government bonds slid during late Asian session Wednesday as risk appetite improved despite United States President Donald Trump’s suspected involvement in campaign finance crimes, as outlined by his lawyer, Michael Cohen.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, remained slightly higher at 0.095 percent, the yield on the long-term 30-year note jumped 1-1/2 basis points to 0.846 percent and the yield on short-term 2-year traded tad higher at -0.119 percent by 05:25GMT.

According to a report from CNBC, U.S. President Trump’s former lawyer and fixer Michael Cohen made startling admissions in New York federal court on Tuesday, implicating the President in an illegal scheme to silence two women from making public their claims of having sex with him.

President Trump’s personal criticism of Federal Reserve Chairman Powell and his discomfort with higher US policy interest rates, while also accusing Europe and China of currency manipulation, weighed on the US dollar. That helped to support general risk sentiment, including in emerging markets. This was despite him also indicating there would be ‘no concessions’ to Turkey relating to the detainment of the American pastor, while also playing down a resolution to the trade dispute with China, Lloyds Bank reported.

Meanwhile, the Nikkei 225 index rose 0.54 percent to 22,340.00 by 05:25GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -63.08. For more details, visit http://www.fxwirepro.com/currencyindex