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JGBs gain as U.S. President Trump terrorizes China with additional tariffs

Japanese government bonds gained on Tuesday after U.S. President Donald Trump terrorizes additional tariffs on Chinese goods in an escalating trade war between the world's two biggest economies.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, fell 1/2 basis point lower at 0.034 percent, the yield on the long-term 30-year note also dipped 1/2 basis point to 0.714 percent and the yield on short-term 2-year moved 1/2 basis point down to -0.135 percent by 03:40 GMT.

U.S. President Donald Trump threatened on Monday to impose a 10 percent tariff on $200 billion of Chinese goods, escalating a tit-for-tat trade war with Beijing.

Bonds markets witnessed heavy buying after the world’s second-largest economy, China announced at the weekend that it would retaliate against new US tariffs on USD50 billion in Chinese imports that will go into effect within days, taking the world’s two largest economies to the brink of a full-scale trade war.

According to the ministry of finance, Japan 30-year JGB auction lowest price 102.2000, average price 102.2700, bids accepted at lowest price 39.1509 percent. Japan 30-year JGB auction bid-to-cover ratio 4.22.

Meanwhile, the Nikkei 225 index traded 0.96 percent lower at 22,462.50 by 03:40 GMT, while at 03:00GMT, the FxWirePro's Hourly JPY Strength Index remained slightly bullish at 80.76 (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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