JGBs close higher ahead of March national consumer price inflation data

The Japanese government bonds closed higher Thursday as investors wait to watch the country’s national consumer price inflation (CPI) data for the month of March, scheduled to be released today by 23:30GMT.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, jumped 7 basis points to -0.023 percent, the yield on the long-term 30-year surged 2-1/2 basis points to 0.545 percent and the yield on short-term 2-year plunged 16 basis points to -0.159 percent by 07:00GMT.

Global risk appetite may be muted ahead of the upcoming Good Friday and Easter long weekend. Overnight, the UST yield curve had bull steepened as Wall Street and oil prices retreated, with the former dragged down by healthcare stocks (amid the “Medicare for All policy debate) whilst earnings from financials and transportation stocks were also mixed, OCBC Treasury Research reported.

Whilst Asian markets had generally traded on a firm tone yesterday following China’s better-than-expected 6.4 percent y/y growth and talk of more policy stimulus, trading activities may wind down today pre-holiday, the report added.

Meanwhile, the Nikkei 225 index closed 0.90 percent lower at 22,078.50, while at 06:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 67.79 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex