JGBs close flat amid successful 30-year auction; eyes on May household spending data

The Japanese government bonds closed flat Thursday amid a successful super-long 30-year auction that drew ample demand from investors ahead of the country’s household spending data for the month of May, due today by 23:30GMT.

At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, hovered around -0.153 percent, the yield on the long-term 30-year flat at 0.344 percent and the yield on short-term 2-year also steadied at -0.216 percent.

According to a report from OCBC Treasury Research, the stabilization in the USD-CNH after hitting a high of 6.9000 may provide a further buffer for Asian FX into today’s session.

Further, the U.S. dollar may remain slightly under threat (especially against risk-related currencies) if markets chose to focus on the imminent monetary policy relaxation of global central banks floating both equities and the antipodeans.

Meanwhile, the Nikkei 225 index closed tad up at 21,702.45, while at 06:00GMT, the FxWirePro's Hourly JPY Strength Index remained slightly bearish at -99.97 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex