The Japanese government bonds slumped during Asian session Wednesday after investors’ risk sentiments improved, following an ease in global trade tensions between the United States and China, on deemed possibility of a trade talk between the duo.
The yield on Japan’s benchmark 10-year bond, which moves inversely to its price, jumped 6 basis points to 0.12 percent, the yield on the long-term 30-year climbed 6-1/2 basis points to 0.81 percent and the yield on short-term 2-year remained 2-1/2 basis points higher at -0.08 percent by 05:00GMT.
According to a report from Bloomberg, the U.S. and China are considering to re-start talks to avoid a trade collusion. U.S. Secretary Steven Mnuchin and Chinese Vice Premier Liu He are holding "some quiet conversations" privately, CNBC reported.
The BoJ undertook measures to make its monetary policy framework more flexible, although pledging to keep interest rates low for a long period of time, but said that rates can rise or fall, depending on the economic health of the country.
The noted changes show that Governor Haruhiko Kuroda plans to stick to a radical stimulus programme as of now, but will keep a close eye on how the other economies react to the changes in policies, Reuters reported.
Meanwhile, the Nikkei 225 index rose nearly 1 percent to 22,745.50 at 05:10, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bearish at -117.43 (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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