JGBs rise across the curve on U.S. Treasuries retreat; U.S. 10-year yields form 3 black crows candlestick pattern

The Japanese government bonds strengthened Monday, following gains in the U.S. Treasury prices. Also, we foresee that the U.S. 10-year bond yields likely to fall further as it forms three black crows candlestick pattern, predicting the reversal of the previous uptrend.

The benchmark 10-year bond yield, which moves inversely to its price, fell nearly 3 basis points to 0.011 percent, the yield on long-term 30-year note dipped more than 3 basis points to 0.576 percent and the yield on short-term 2-year note slid 2 basis points to -0.15 percent by 06:30 GMT.

The JGBs have been closely following developments in the U.S. debt market. The United States benchmark 10-year Treasury yield declined 6 basis points to 2.31 percent.

Crude oil prices fell after Saudi Arabia cancels its meeting with non-OPEC members, including Russia. The International benchmark Brent futures fell 0.45 percent to $48 and West Texas Intermediate (WTI) dipped 0.35 percent to $45.90 by 05:00 GMT.

Markets will mostly remain quiet next week with little in the way of market-moving news, and with no important data scheduled to be released. Thereby, investors will focus on the outcome of OPEC meeting scheduled to be held on November 30.

Moreover, the consumer inflation in Japan extended it fall for the eight consecutive month this year, declining for the longest streak since 2011 amid the Bank of Japan’s expectations for the crucial indicator to drop further in the fiscal year through March next year.

Japan’s consumer prices, excluding fresh food, fell 0.4 percent year-over-year in October, following a 0.5 percent decline in September, data released by the Ministry of Internal Affairs and Communications showed Friday.

However, the overall consumer price index edged up 0.1 percent annually in October, reversing a 0.5 percent decrease in the previous month. It was the first increase in seven months. Also, core consumer prices, which exclude energy and food, rose 0.2 percent on year, after remaining flat in the preceding month.

In addition, fresh food prices jumped 11.4 percent in October due to typhoons and poor summer weather. This contributed almost 0.5 percentage point to the rise in overall CPI. However, energy costs dropped 7.9 percent, dragging down inflation by almost 0.6 percentage point.

Meanwhile, the benchmark Nikkei 225 closed down 0.13 percent at 18,356.89. While at 06:00 GMT, the FxWirePro's Hourly Japanese Yen Strength Index remained highly bearish at -130.54 (lower than -75 represents bearish trend).