The Japanese government bonds slid on the first trading day of the week, tracking weakness in the U.S. counterpart after tensions over the Korean Peninsula subsided, pulling down demand for safe-haven instruments.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose1 basis point to 0.006 percent, the yield on long-term 30-year hovered around 0.81 percent and the yield on short-term 2-year traded 1/2 basis point higher at -0.15 percent by 03:50 GMT.
U.S. government debt yields were higher on Friday, as investors digested commentary from the European Central Bank's latest meeting and recent commentary from Federal Reserve officials. On Thursday, ECB President Mario Draghi said he was confident the region's inflation will move towards the bank's target but warned that downside risks remained.
Investors will be watching closely for any updates out of the White House, in light of the recent political news that has rocked markets as of late, including escalating tensions with North Korea and talk of a short-term extension of the debt ceiling and government funding plan, in light of the chaos Hurricane Harvey inflicted on the country.
Meanwhile, Japan’s Nikkei 225 jumped 1.46 percent to 19,556.00 by 03:55GMT, while at 03:00GMT, the FxWirePro's Hourly Yen Strength Index remained slightly bearish at -76.62 (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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