JGBs suffer despite return of trade war worries over NAFTA negotiations; Nikkei 225 falls

Japanese government bonds suffered during late Asian session Monday even as investors’ risk sentiments dented following return of trade war worries over NAFTA negotiations during the weekend. Following this, Japan’s benchmark stock index Nikkei 225 also fell, giving up gains near to half a cent.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, jumped nearly 1-1/2 basis points to 0.116 percent, the yield on the long-term 30-year note also surged close to 1-1/2 basis points to 0.857 percent and the yield on short-term 2-year traded 1/2 basis point higher at -0.107 percent by 05:40GMT.

According to a report from Reuters, "U.S. President Donald Trump said on Saturday there was no need to keep Canada in the North American Free Trade Agreement and warned Congress not to meddle with the trade negotiations or he would terminate the trilateral trade pact altogether".

In addition, the report said that Hiroyuki Fukunaga, Chief Executive of Investrust views the U.S.-Japan trade talks due this month is a "discouraging outlook" for the economy, forcing investors to remain on the sidelines as of now.

Meanwhile, the Nikkei 225 index traded 0.54 percent down at 22,733.00 by 05:50GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 42.34. For more details, visit http://www.fxwirepro.com/currencyindex