JGBs tad higher on last trading day in muted session amid geopolitical uncertainties

Japanese government bonds remained tad higher on the last trading day of the week in a muted session that witnessed least investor interference amid a slew of geopolitical tensions surrounding China and Turkey with the United States. However, China is said to resume its trade talks with the U.S. by end of this month.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, slipped 1/2 basis point to 0.095 percent, the yield on the long-term 30-year note also fell 1/2 basis point to 0.846 percent and the yield on short-term 2-year traded nearly 1-1/2 basis points lower at -0.127 percent by 04:50GMT.

Major equity markets rose overnight, with Wall Street higher after Walmart reported its best sales growth in over a decade and commodity stocks rebounded, while the USD saw its first decline in six days. The Turkish lira also rallied for a third day before paring gains after US Treasury Secretary Mnuchin warned of more Turkish sanctions if President Erdogan refuses to release an American pastor, OCBC Treasury Research reported in its 'Daily Outlook'.

Ahead of Chinese Vice Commerce Minister Wang Shouwen’s visit to the US for trade talks in late August, US President Trump has opined that “we’re not going to do any deal until we get one that’s fair to our country”, the report added.

Meanwhile, the Nikkei 225 index rose 0.40 percent to 22,280.00 by 05:00GMT, and at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral). For more details, visit http://www.fxwirepro.com/currencyindex