Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

JGBs nearly flat as investors remain sidelined amid lack of major domestic events

The Japanese government bonds traded nearly flat Wednesday as investors remain sidelined in any big deal amid lack of any major domestic events. However, market participants will remain focussed on the month-end monetary policy meeting of the Bank of Japan.

We foresee that the bond prices will keep drifting between small gains and losses in quiet trading session.

The benchmark 10-year bond yield, which moves inversely to its price, hovered around 0.05 percent, the long-term 30-year bond yields stood flat at 0.74 percent and the yield on the 3-year note remained steady at -0.17 percent by 06:40 GMT.

The BoJ’s first two-day monetary policy meeting for 2017 will take place on January 30-31. We foresee that the central will remain committed to hold its 10-year JGB yields near zero, while keeping interest rate steady at -0.10 percent.

Lastly, in terms of recent economic data, Japan’s industrial production (IIP) growth remained unchanged in November, registering a consistent positive growth in last 5 months. The final IIP for November came at +1.5 percent m/m (flash was +1.5 percent m/m), from preliminary +1.5 percent in September.

Also, shipments climbed 1.0 percent m/m, slightly above the 0.9 percent growth reported earlier. Additionally, inventories fell 1.6 percent, from down -1.5 percent. On an annual basis, industrial production rose 4.6 percent in November, up from -1.4 percent in September.

Meanwhile, the benchmark Nikkei 225 traded 0.30 percent higher at 18,870, while at 6:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at -6.73 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.