JGBs trade sideways in muted session ahead of January industrial production  

Japanese government bonds traded sideways Thursday as investors remained muted in a silent session that witnessed little data of any economic significance. Market participants are now eyeing the country’s industrial production for the month of January, scheduled to be released on March 16 by 04:30GMT for further direction in the debt market.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.04 percent, the yield on the long-term 30-year note remained steady at 0.76 percent and the yield on short-term 2-year traded tad lower at -0.14 percent by 04:55 GMT.

Global risk appetite remained somewhat nervous on lingering US trade protectionism concerns, with Wall Street and USD declining whilst US Treasury bonds gained further.

Larry Kudlow, who has been appointed by President Trump as the economic advisor, signaled a strong USD and a tougher China stance, on top of advising the FOMC to not “overdo” rate hikes as “growth is not inflationary. Just let it rip”. On pursuing “phase two” of the tax reform, he said the Trump administration would seek to make tax cuts for individuals permanent, and include a lower capital gains rate

Meanwhile, the Nikkei 225 index traded 0.4 percent higher at 21,785.50 by 04:55 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 56.68 (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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