US Dollar Holds Firm as Fed Outlook and Iran Tensions Keep Markets on Edge 
Asian Stocks Rally as Cooling US Inflation Boosts Fed Rate Outlook 
Gold Prices Slip From 10-Week High as Fed and Hormuz Risks Shape Outlook 
US Dollar Slips as Softer PPI Data Eases Fed Rate Hike Expectations 
KOSPI Eyes Best Weekly Gain Since June as Samsung, SK Hynix Rally 
Asian Stocks Rise as AI Chip Rally Lifts South Korea, Japan 
Asian Currencies Steady Ahead of US CPI as Oil Prices Rise 
Gold Prices Slip From Two-Month High as Inflation and Fed Outlook Drive Markets 
Oil Prices Fall as U.S. Crude Inventories Surge and Hormuz Tensions Persist 
Add as a preferred source on Google
Japanese government bonds gained on Wednesday as Bank of Japan announced it was keeping its monetary policy setting unchanged, shooting market theories of an early reduction in QE. Also, firmness in the U.S. Treasuries supported the safe-haven buying.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, fell 1/2 basis point to 0.073 percent, the yield on the long-term 30-year note traded nearly flat at 0.826 percent and the yield on short-term 2-year remained steady at -0.134 percent by 04:00 GMT.
On Tuesday, the BoJ maintained its short-term interest rate at -0.100 percent and remained committed to keeping the 10-year JGB yield near zero. The central bank, in its monetary policy statement, stated that it would expand its monetary base until inflation becomes stable at or above 2 percent.
The central bank is under little pressure to adopt additional action even though inflation remains well below the BoJ's 2% target range. We think it is still premature for the BoJ to change its policy framework, but expect the board to start discussing how it can add flexibility to its 10-year JGB yield targeting policy.
Moreover, in its daily open market operation held on Wednesday, the Bank of Japan bought JPY250 billion of to 1-3 year JGBs, JPY300 billion worth of bonds of 3-5 years of maturity and JPY410 billion worth of bonds of 5-10 years of maturity.
In the United States, Treasuries saw upward pressure across the curve during a relatively quiet session light on economic data of great significance. On the data front, markets were largely limited to a lackluster Richmond Fed manufacturing activity index release, decreasing to 14 in January, from 20 in December and a well-subscribed 2-year Note auction. Markets now await a light flow of data on Wednesday, highlighted by existing home sales and Markit US/services PMI data, followed by a 5-year Note auction later in the session.
Meanwhile, the Nikkei 225 index traded 0.81 percent lower at 23,928 by 04:05 GMT, while at 04:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 60.22 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
