JGBs slip ahead of super-long 30-year auction amid muted trading session

The Japanese government bonds slipped during late Asian session Tuesday ahead of the super-long 30-year auction, scheduled to be held on October 11 by 03:35GMT amid an otherwise muted trading session that witnessed data of little economic significance.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, rose 1/2 basis point to 0.155 percent, the yield on the long-term 30-year note also gained 1/2 basis point to 0.947 percent and the yield on short-term 2-year too traded tad higher at -0.114 percent by 05:25GMT.

The S&P500 closed lower overnight, while the UST bond market was closed for the Columbus Day holiday. However, global risk sentiments clearly remain vulnerable amid the hardening US-China rhetoric and Chinese equity markets saw a bumpy re-opening after the Golden Week holidays notwithstanding the 1 percent point RRR cut and the improvement in the Caixin services and composite PMIs, OCBC Bank reported in its Daily Treasury Outlook

Lastly, Fed’s Bullard opined that the U.S. will need faster productivity growth in order to maintain above trend growth, and that one can’t read as much in to the US labor market data as in the past due to the weakening correlation with inflation.

Meanwhile, the Nikkei 225 index slumped 1.30 percent to 23,522.00 by 05:30GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained slightly bearish at 76.70 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex