JGBs follow softness in U.S. Treasuries, investors eye February retail sales next week

The Japanese government bonds traded modestly lower Friday, tracking softness in U.S. Treasuries and as investors are waiting to read the February retail sales data, scheduled to be released early next week for further direction in the debt market.

The benchmark 10-year bond yield, which moves inversely to its price, rose 1 basis point to 0.06 percent, the long-term 30-year bond yields also pushed higher by 1 basis point to 0.84 percent and the yield on the short-term 2-year note traded 1/2 basis point up at -0.26 percent by 06:20 GMT.

Investors unwound carry trades while watching to see whether the President Trump can push through a healthcare bill, as failure could signal problems to come pursuing his economic agenda. Financial markets' immediate focus is on whether Trump can gather enough support at a vote later in the day to rollback Obamacare, one of his key campaign pledges.

Further, market participants remain worried that if the White House fails at this hurdle, progress on fiscal stimulus and tax cuts might be derailed. The jitters have hurt risk sentiment globally and undermined commodity prices, which is bad for Australia.

Meanwhile, Japan’s Nikkei 225 closed 0.93 percent higher at 19,262.53 by 06:50GMT, while at 06:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at 30.98 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex