Japanese government bonds slumped on Wednesday as stocks prices rebounded after witnessing three straight days of heavy sell-off. Also, investors await the 30-year JGBs auction scheduled to be held on Thursday.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1/2 basis point to 0.078 percent, the yield on the long-term 30-year note traded ½ basis point higher at 0.815 percent and the yield on short-term 3-year also climbed 1/2 basis point to -0.097 percent by 04:30 GMT.
Japanese stocks recovered sharply on Wednesday after crumbling to their biggest percentage fall in 15 months the previous day, with all sectors in the black as Wall Street pulled ahead following a punishing sell-off in the preceding days, Reuters reported.
Moreover, in its daily open market operation held on Wednesday, the Bank of Japan bought JPY250 billion of to 1-3 year JGBs, JPY330 billion worth of bonds of 3-5 years of maturity and JPY450 billion worth of bonds of 5-10 years of maturity.
In the United States, Treasuries saw some downward pressure across the curve after 10-year US Treasury yield dropped from a 4-year high of 2.88 percent early on Monday to close of 2.70%, currently hovering around 2.78 percent.
Meanwhile, the Nikkei 225 index traded 1.50 percent higher at 21,928.50 by 04:35 GMT, while at 04:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 66.22 (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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