The rise in inequality is attributed to the shrinking wages of low-income households, and a cut down in temporary positions
Canadian existing home sales fall quite sharply in April, likely to remain depressed for several months
The increased spending is seen as a preparation to secure competitiveness after the coronavirus pandemic
JGBs close mixed in silent trading session ahead of long weekend
The Japanese government bonds closed mixed on Friday as investors remained divided amid a silent session that barely witnessed data of major economic significance ahead of the country’s long weekend, following Autumn Equinox on Monday.
The yield on the benchmark 10-year JGB note, which moves inversely to its price, closed flat at -0.219 percent, the yield on the long-term 30-year jumped 2-1/2 basis points to 0.334 percent and the yield on short-term 2-year suffered 4 basis points to -0.303 percent.
Amid the flurry of central bank meetings yesterday, Wall Street largely treaded water. Bank of Japan’s (BoJ) Governor Kuroda said the central bank will review economy and inflation at the October meeting, but won’t allow yields to fall for a prolonged period, whilst BoE and CBC were static and BI cut 25bps as expected and still sounded dovish, OCBC Treasury Research reported.
The UST bonds extended gains, grinding the 10-year yield down to 1.78 percent. On the US-China trade front, rhetoric remains mixed with White House adviser Kudlow opining there is a “little softening” in the mood, whereas another adviser Michael Pillsbury warning that tariffs can be raised higher to 50 percent or 100 percent and there are other options involving the financial markets and Wall Street, the report added.
Meanwhile, the Nikkei 225 index closed tad 0.16 percent higher at 22,079.09.