Japanese government bonds remained range-bound Thursday as investors remained side-lined in a muted trading week ahead of the country’s first quarter 2018 gross domestic product (GDP) data, scheduled to be released today by 23:50GMT which shall add further direction to the debt market.
The yield on the benchmark 10-year JGB note, which moves inversely to its price, hovered around 0.05 percent, the yield on the long-term 30-year note slid 1/2 basis point to 0.72 percent and the yield on short-term 2-year remained flat at -0.12 percent by 05:20GMT.
U.S. Treasury yields rose on Wednesday with the 10-year yield hitting a 1-1/2 week high on worries that the European Central Bank would end the expansion of its massive bond purchase program later this year.
Political turmoil in Italy and Spain in recent days has spurred speculation ECB policy-makers may back away from winding down their EUR2.55 trillion (USD3 trillion) program in September.
Meanwhile, the Nikkei 225 index rose 0.91 percent to 22,831.50 by 05:30 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bearish at -176.29 (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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