Japanese bonds traded nearly flat as investors remain sidelined in any big deal amid lack of any major domestic events. We foresee that the bond prices will keep drifting between small gains and losses in quiet trading session.
The benchmark 10-year bond yield, which moves inversely to its price, hovered around 0.04 percent, the long-term 30-year bond yields stood flat at 0.82 percent and the yield on the 3-year note remained steady at -0.17 percent by 03:40 GMT.
Japan's export growth held steady in October, suggesting that brisk global demand for Japanese cars and electronics will likely carry its economic recovery into the current quarter. Ministry of Finance (MOF) data showed that exports rose 14.0 percent year-on-year in October, led by shipments of cars to Australia and liquid-crystal device production equipment and raw materials for plastics to China. That compares with a 15.8 percent annual gain expected by economists following a 14.1 percent increase in September, Reuters reported.
Japan's imports rose 18.9 percent in the year to October, versus the median estimate for a 20.2 percent annual increase. It was the fastest annual increase since January 2014, pushed up by a weak yen and imports of crude oil, oil products, and coal. The resulting trade balance was a surplus of 285.4 billion yen in October versus the median estimate for a positive balance of 330.0 billion yen, a fifth straight surplus month.
In the United States, Treasuries saw a mixed performance to finish off the week on Friday as the downward pressure in the short-end was contrasted by modest gains further out the curve.
Meanwhile, Japan’s Nikkei 225 fell 0.52 percent to 22,280.00 at 03:45 GMT, while at 03:00GMT, the FxWirePro's Hourly Yen Strength Index remained highly bullish at 127.54 (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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