Japanese government bonds gained Tuesday in a muted trading session that witnessed least data of major economic significance and as investors await the country’s 30-year auction scheduled to be held later this week.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slipped 1 basis point to 0.07 percent, the yield on the long-term 30-year note also fell nearly 1 basis point to 0.81 percent and the yield on short-term 2-year too traded 1 basis point lower at -0.14 percent by 05:50 GMT.
On Friday the BoJ announced a special JGB buying operation, offering to buy 10-year bonds at 0.110 percent. In addition, it also increased the amount of buying in its regular buying of JGBs with over five to ten years to maturity.
JGBs had been under pressure as global bond yields have soared on expectations that inflation may finally gain momentum on the back of solid global economic growth and U.S. President Donald Trump’s spending and tax cuts plans.
Meanwhile, the Nikkei 225 index slumped 5.13 percent to 21,516.00 by 05:55 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bullish at 113.24 (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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