JGBs crawl downside ahead of October retail sales, industrial production data

The Japanese government bonds crawled downside on Wednesday ahead of the country’s retail sales and industrial production data for the month of October, scheduled to be released on today and 29 respectively by 23:50GMT.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, jumped to 0.099 percent, the yield on the long-term 30-year note remained tad higher at 0.813 percent while the yield on short-term 2-year fell to -0.134 percent, from yesterday’s 0.139 percent by 05:50GMT.

Wall Street ended higher again yesterday with all the three main indexes showing a climb. On the interest rate front, Federal Reserve Chairman Richard Clarida appears to have backed gradual hikes as he states his believe that “some further gradual adjustment in the policy rate range will likely be appropriate” whilst also mentioning that risks are “less skewed on the downside”.

According to a recent Reuters poll, Japan’s industrial output likely rebounded in October after the previous month’s drop due to natural disasters, which would give encouragement that the economy could show growth this quarter.

Further, retail sales probably grew at faster annual pace than in September, reflecting a tight labor market and gradual wage growth, it showed.

Meanwhile, the Nikkei 225 index traded 1.05 higher at 22,183.00 by 05:55GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -71.70 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex