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Japanese government bonds traded narrowly mixed on Wednesday as trading activity remained subdued after market participants take advantage of the shortened trading week between Christmas and New Year to take time off.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1/2 basis point to 0.051 percent, the yield on new long-term 40-year traded flat at 0.982 percent and the yield on short-term 2-year dipped 1/2 basis point at -0.137 percent by 04:00 GMT.
The Bank of Japan bought more of short-term Japanese government bonds (JGBs) in its regular debt-purchasing operation. The central bank offered to buy 50 billion yen of below one -year JGBs, 250 billion yen of 1-3 year maturity and 300 billion yen of 3-5 year of maturity. The BOJ purchased 25 billion yen of inflation index JGBs.
In the United States, Treasuries saw range bound trading with modest selling in the short-end contrasted by gains further out the curve to open the week during a relatively quiet Tuesday session light on data of great significance.
With respect to data, markets largely absorbed a handful of lower-tier releases, highlighted by S&P CoreLogic Case-Shiller home prices (composite-20 measure increasing 6.4 percent y/y in October, from +6.2 percent y/y in September), followed by mixed readings from Richmond Fed and Dallas Fed manufacturing releases.
Markets now look ahead to what stands to be another relatively light Wednesday session, highlighted by Conference Board consumer confidence and pending home sales data, followed by a 5-year Note auction later in the session.
Meanwhile, Japan’s Nikkei 225 traded 0.11 percent higher at 22,918.50 by 04:25, while at 04:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at 52.82 (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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