JGBs trade sideways in silent session as investors book profits ahead of approaching weekend

Japanese government bonds traded sideways on the last trading day of the week as investors refrained from any major trading activity amid a muted session that witnessed no data of major economic significance. Also, investors remained engaged in profit-booking ahead of the approaching weekend.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.05 percent, the yield on long-term 30-year also traded nearly flat at 0.81 percent and the yield on short-term 2-year steadied at -0.13 percent by 06:00 GMT.

Japan’s seasonally adjusted Business Activity Index - fell to 51.1 in December, from 51.2 in November. This marked the softest output increase since September. Moreover, the rate of growth was below the average seen across the current 15-month sequence of expansion. Nonetheless, panelists indicated that the modest rise was driven by greater sales.

In contrast, the manufacturing sector expanded production at the fastest rate since February 2014. The Nikkei Composite Output Index remained unchanged from November at 52.2 during December to indicate a moderate pace of private sector output growth.

Meanwhile, Japan’s Nikkei 225 closed nearly 1.00 percent higher at 23,720.00 while at 06:00GMT, the FxWirePro's Hourly Yen Strength Index remained slightly bearish at -81.85 (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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