JGBs gain tracking following U.S. Treasuries after North Korea threatens hydrogen bomb attack

The Japanese government bonds gained tracking similar momentum in the U.S. counterpart after North Korean leader Kin-Jong-Un said that the North would consider the “highest level of hard-line countermeasure in history” against the United States and that Trump’s comments had confirmed his own nuclear program was “the correct path”.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slipped nearly 1 basis point to 0.02 percent, the yield on long-term 30-year also fell 1 basis point to 0.82 percent and the yield on short-term 2-year too traded 1 basis point lower at -0.13 percent by 04:50 GMT.

Kim blasted U.S. President Donald Trump as “mentally deranged” on Friday and vowed to make him pay dearly for threatening to destroy his country, hours after Trump ordered fresh sanctions over Pyongyang’s weapons programs, Reuters reported.

The U.S. President said in his first address to the United Nations on Tuesday he would “totally destroy” the country of 26 million people if the North threatened the United States and its allies, and called Kim a "rocket man" on a suicide mission.

According to reports from South Korea’s Yonhap news agency, North Korean Foreign Minister Ri Yong Ho said that Pyongyang could consider a hydrogen bomb test on the Pacific Ocean of an unprecedented scale

Meanwhile, Japan’s Nikkei 225 traded 0.33 percent lower at 20,281.00 by 04:55GMT, while at 04:00GMT, the FxWirePro's Hourly Yen Strength Index remained slightly bearish at -78.98 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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