JGBs remain narrowly mixed as investors await February retail sales, industrial production

The Japanese government bonds remained narrowly mixed Wednesday in a silent session amid lack of economically significant data. Investors are now eyeing the country’s retail sales and industrial production for the month of February, scheduled to be released on March 29 for detailed direction in the debt market.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, remained tad higher at 0.03 percent, the yield on the long-term 30-year note slid 1/2 basis point to 0.73 percent and the yield on short-term 2-year too traded flat at -0.14 percent by 04:50 GMT.

Market hopes for a peaceful resolution to the US-China trade tensions were dashed overnight amid news that the Trump administration is considering investment curbs by the Chinese on sensitive technologies by invoking the “International Emergency Economic Powers Act”.

US Commerce Secretary Ross also hinted at “limitations on foreign investment” and pending legislation to bulk up the Committee on Foreign Investment in the US. Wall Street tanked again, while the 10-year Treasury bond yield fell below the 2.8 percent handle to 2.77 on the flight to quality.

Elsewhere, China confirmed that North Korean leader Kim Jong Un met with President Xi on a four-day trip. Kim reportedly told Xi he was committed to denuclearization of the Korean Peninsula and was willing to hold a summit with the US.   

Meanwhile, the Nikkei 225 index slumped 1.63 percent to trade at 20,922.50 by 05:05 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained slightly bearish at -96.32 (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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