The Japanese government bonds traded flat in muted trading session as investors shifted towards riskier assets including equities and oil. Also, a rise in US Treasury yields post the tepid 10-year auction added to further sluggishness in Japanese bonds.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.02 percent, the yield on long-term 30-year rose 1/2 basis point to 0.83 percent and the yield on short-term 2-year traded flat at -0.14 percent by 04:55 GMT.
The United States held a 10-year auction overnight, where, After the auction, U.S. 10-year yields, which move inversely to prices, matched a high hit two weeks ago, while 30-year bonds touched three-week peaks.
The 10-year note auction’s lukewarm result was expected, analysts said, given how much rates have declined in the past week. Over the last two weeks, 10-year yields have fallen about 10 basis points.
Meanwhile, Japan’s Nikkei 225 rose 0.44 percent to 19,863.00 by 03:55GMT, while at 03:00GMT, the FxWirePro's Hourly Yen Strength Index remained slightly bearish at -89.49 (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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