Long-term JGBs flat in muted session tracking U.S. Treasuries; Fed Chair Powell remains optimistic over economic growth

The Japanese government bonds traded flat Thursday amid a muted trading session that witnessed data of little economic significance. This is however, in line with the movement in U.S. Treasuries after the Federal Reserve’s Chair Jerome Powell remained optimistic over the country’s economic growth in his speech delivered overnight.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, hovered around 0.110 percent, the yield on the long-term 30-year note remained nearly flat at 0.870 percent and the yield on short-term 2-year fell 6 basis points to -0.134 percent by 05:40GMT.

Fed Chair Jerome Powell has said that he believes the “economy can grow and grow faster” whilst the Fed is thinking about “how much further to raise rates and the pace”. The Fed will also be holding press conferences after each FOMC starting next year, which Jerome Powell said means that all meetings are now “live” for possible rate increases.

Meanwhile, the Nikkei 225 index slipped 0.47 to trade at 21,743.50 by 05:50GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -49.08 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex