JGBs narrowly mixed ahead of July consumer price inflation

The Japanese government bonds remained narrowly mixed Tuesday, as investors wait to watch the country’s consumer price inflation for the month of July, scheduled to be released on August 24.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1/2 basis point to 0.04 percent, the yield on long-term 30-year traded fell 1 basis point to 0.84 percent and the yield on short-term 2-year also hovered around -0.13 percent by 04:20 GMT.

A vast majority of Japanese firms do not want any further radical monetary easing, even though they believe the central bank's inflation goal will either take more than three years to achieve or is an impossible target, a latest Reuters corporate poll showed.

The results of the Reuters Corporate Survey underscore the view that authorities may not have the means to bring about an escape to deflation, with respondents noting it has become too entrenched and that the mind-set of a rapidly ageing but mostly middle-class population worried about pensions hinders any exit.

On the 2 percent inflation goal itself, 53 percent respondents said it should be maintained, while 20 percent believed it should be lowered and 24 percent said it should be ditched altogether.

Meanwhile, Japan’s Nikkei 225 traded 0.07 percent higher at 19,406.50 by 04:20GMT, while at 04:00GMT, the FxWirePro's Hourly Yen Strength Index remained slightly bullish at 81.54 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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