JGBs tad higher after Nikkei 225 retreats following Italy worries; August household spending data eyed

Japanese government bond prices traded tad higher during late Asian session Wednesday, following a dip in investors’ sentiments after the Nikkei 225 retreated, owing to budget worries and political disturbances in Italy. Investors will now be eyeing the country’s household spending data for the month of August, scheduled to be released on October 4 for further direction in the debt market.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, slipped 1/2 basis point to 0.140 percent, the yield on the long-term 30-year note hovered around 0.916 percent and the yield on short-term 2-year too traded tad lower at -0.113 percent by 05:30GMT.

The Bank of Japan offered to buy one- to 10-year JGBs at its regular debt-purchasing operation on Wednesday, leaving the offer amounts unchanged from its previous operation.

U.S. Treasury prices rose during overnight session Tuesday after an Italian lawmaker cast doubt over Italy’s membership in the euro, resulting in a sell-off in Italian government debt which sent investors seeking safe-haven bets, Reuters reported.

Meanwhile, the Nikkei 225 index fell 0.60 percent to 24,113.00 by 05:40GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 21.31 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex