JGBs end steady amid muted trading session ahead of April industrial production data

The Japanese government bonds ended steady on Thursday amid a silent Asian trading session that witnessed data of little economic significance as investors wait to watch the country’s industrial production data for the month of April, scheduled to be released on June 13 by 04:30GMT for further direction in the debt market.

At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, hovered around -0.113 percent, the yield on the long-term 30-year slightly slipped to 0.343 percent and the yield on short-term 2-year remained nearly stable at -0.197 percent.

US markets traded cautiously yesterday, with equities dipping and Treasuries gaining. Brent tumbled below $60/bbl while gold inched higher. The feel-good exuberance in the past week – driven largely by Mexico averting trade tariffs and poor US job data sparking speculations of a Fed rate cut – have gradually tapered and cautiousness is now seeping into global markets once more, OCBC Treasury Research reported.

Trade pessimism continues to be the main source of bearishness in the markets, as US President Donald Trump continues with his rhetoric of a new set of tariffs on Chinese goods if there is not forthcoming meeting between himself and President Xi at the G20 meeting.

Trump also added further ambiguity to the potential trade talks by declaring that there is no deadline on talks, other than “what’s up here”, pointing to his head. China has also continued to remain mum on whether Xi will meet with Trump at the G-20 meeting, the report added.

Meanwhile, the Nikkei 225 index closed -0.57 percent lower at 21,018.50, while at 06:00GMT, the FxWirePro's Hourly JPY Strength Index remained slightly bearish at 47.38 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex