Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
The Japanese government bonds traded mixed Thursday after the Bank of Japan announced its first special bond-buying operation to control Treasury yields. Also, 10-year yields fell to day’s low of 0.009 percent post the BoJ’s operation.
However, the market will remain focused on the upcoming Federal Reserve Chair Janet Yellen’s testimony, in an attempt to estimate the Fed's most likely policy step.
The benchmark 10-year bond yield, which moves inversely to its price, fell 1/2 basis point to 0.019 percent, the yield on long-term 30-year note climbed 1 basis point to 0.588 percent and the yield on short-term 2-year note dipped 4 basis points to -0.148 percent by 06:30 GMT.
According to Reuters, under BoJ’s current monetary policy scheme outlined in September to adopt a strategy of JGB yield curve control, the BoJ has said it will guide the benchmark 10-year yield to around zero percent in an effort to stoke stubbornly low inflation and boost growth.
On Thursday, the BoJ offered to buy an unlimited amount of JGBs with 1 to 3 years of maturity at a yield of 0.020 percent above the previous close. It also offered to purchase an unlimited amount of JGBs with 3 to 5 years to maturity at 0.019 percent above the previous close, Reuters added.
The JGBs have been closely following developments in the U.S. debt market. The United States benchmark 10-year Treasury yield tumbled 2-1/2 basis points to 2.200 percent.
Moreover, the economic growth of Japan during the third quarter of this year unexpectedly rose, largely beating expectations, following strong recovery in the country’s outbound shipments. However, weak consumer and household spending continued to exert downward pressure on the country’s near-term growth prospects.
Japan’s gross domestic product (GDP) expanded by an annualised 2.2 percent, data released by the Cabinet Office showed Monday, compared to a median estimate of economists for +0.8 percent. Exports grew 2.0 percent, the fastest gain in a year, but the increase was driven by potentially one-off factors such as a boost in shipments of smartphone parts.
Meanwhile, the benchmark Nikkei 225 closed nearly flat at 17,862.21 and the broader Topix index closed up 0.10 percent higher to 1,423.08 points.
While at 06:00 GMT, the FxWirePro's Hourly Japanese Yen Strength Index remained highly bearish at -151.24 (lower than -75 represents bearish trend).
