JGBs gain even as U.S. Treasury yields hover near multi-year highs following global debt rout

The Japanese government bonds gained on the last trading day of the week Friday even as the United States Treasury yields hovered near multi-year highs following a global debt market rout that started yesterday, in line with a better-than-expected set of economic data released Wednesday.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, fell 1 basis point to 0.150 percent, the yield on the long-term 30-year note also slipped 1 basis point to 0.943 percent and the yield on short-term 2-year too traded 1 basis point lower at -0.117 percent by 05:30GMT.

The Bank of Japan today kept the size of its buying in super-long government bonds even as their yields spiked to 2-1/2-year highs, reinforcing a recent commitment to allow wider yield moves aimed at tempering distortions caused by its ultra-loose policy, Today reported in its publication.

The central bank's new flexible policy framework, adopted in late July, appeared to address widespread criticism that its massive asset-purchase program was suffocating the bond market.

Meanwhile, the Nikkei 225 index traded 0.55 percent lower at 23,829.00 by 05:40GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 24.05 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex