JGBs close lower ahead of 10-year, 30-year auction amid muted trading week

The Japanese government bonds closed lower at the start of trading week Monday ahead of the country’s 10-year and 30-year auctions, scheduled to be held on April 3 and 4 by 03:45GMT respectively amid a muted trading week that is scheduled to witness no data of extreme economic significance.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, rose up to -0.075 percent, the yield on the long-term 30-year edged higher to 0.521 percent and the yield on short-term 2-year too traded tad up at -0.170 percent by 07:10GMT.

With the rejection of UK PM May’s Brexit deal for the third time by 58 votes, markets remain in suspense and pressure continues to brew for her to step down and/or to call a fresh election amid the stalemate, OCBC Treasury Research reported.

Meanwhile, China will suspend retaliatory tariffs on US autos and car parts from today, as part of the ongoing trade talks with Liu He due to visit Washington for further trade talks from Wednesday. China’s official manufacturing PMI also rose from 49.2 to 50.5 (back to expansion territory and marking the largest jump since 2012), amid higher new orders and new export orders.

Meanwhile, the Nikkei 225 index closed 1.40 percent higher at 21,502.81, while at 06:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -73.21 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex