The Japanese government bonds traded narrowly mixed Tuesday as investors remained sidelined in any major deal in a silent trading session. However, the markets will remain focused on the upcoming September consumer inflation data releasing on Friday and development in the U.S. Treasuries.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, traded flat at 0.068 percent, the yield on long-term 30-year hovered around 0.88 percent and the yield on short-term 2-year too remained steady at -0.13 percent by 03:20 GMT.
Japan’s October manufacturing PMI came in at 52.5, lower than the market expectations of 53.1, down from 52.9 last month. But it held above the 50-mark which differentiate expansion from contraction.
Japanese media said Monday that Prime Minister Shinzo Abe's Liberal Democratic Party and a small coalition partner had together secured at least 312 seats in the 465-seat lower house of parliament, passing the 310-barrier for a two-thirds majority. Four seats remained undecided.
The victory boosts Abe's chances of winning another three-year term next September as leader of the Liberal Democratic Party. That could extend his premiership to 2021, giving him more time to try to win a reluctant public over to his long-time goal of revising Japan's pacifist constitution.
The Constitutional Democratic Party, set up only about two weeks ago by former chief cabinet secretary Yukio Edano after its predecessor split up, had 54 seats. Tokyo governor Yuriko Koike’s upstart Party of Hope, which briefly jumped in opinion polls last month, won 49 seats.
Meanwhile, Japan’s Nikkei 225 jumped 0.17 percent to 21,732.50, while at 03:30GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at -19.22 (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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