JGBs gain tracking U.S. Treasuries after Fed adopts "patient" approach to future monetary policy decisions

The Japanese government bonds gained during Asian session Thursday, tracking a similar movement in the United States Treasuries after the Federal Reserve adopted a "patient" approach to further monetary policy decisions, hinting at a slower pace of rate hikes this year.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, hovered around 0.001 percent, the yield on the long-term 30-year fell nearly 2 basis points to 0.644 percent and the yield on short-term 2-year plunged nearly 17 basis points to -0.167 percent by 05:30GMT.

According to a report from CNBC, "The Federal Reserve said it will be "patient" when making decisions about future monetary policy. The Fed also removed reference to "further gradual increases" to the federal funds rate in its statement, a signal some market participants took to mean that it may slow the pace of interest rate increases in 2019."

"In a separate release, FOMC members also mentioned the reduction to the central bank's balance sheet. The committee issued a separate three-paragraph statement noting that "it is appropriate at this time to provide additional information regarding its plans to implement monetary policy over the long run."

Lastly, according to data released by the Ministry of Economy, Trade and Industry (METI), Japan’s industrial production slipped 0.1 percent in the recording month, with the seasonally adjusted index of output at factories and mines standing at 104.7 against the base of 100 for 2015.

Meanwhile, the Nikkei 225 index closed 1.11 percent higher at 20,784.50 by 05:35GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 61.96 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex