Government bonds likely to benefit less from ‘safe haven’ inflows going forward due to worries over valuation and volatility, says DNB Markets
New Zealand’s annual current account deficit narrows in Q2, net international liability position widens
U.S. Treasury yields slump on hopes of 25bp Fed rate cut; Chair Powell’s post-conference speech eyed
China’s domestic activity continues to deteriorate in August, credit demand lacklustre amid uncertainty
Australian bonds slump as positive U.S. data aid markets, easing trade tensions provide modest support
JGBs close higher despite better-than-expected improvement in August trade balance; BoJ meeting eyed
BoE likely to maintain guidance for gradually higher rates as long as Brexit has not been clarified, says DNB Markets
JGBs remain flat at close ahead of July national CPI, August manufacturing PMI
The Japanese government bonds closed flat Wednesday as investors keep a close eye on the country’s national consumer price inflation (CPI) for the month of July, scheduled to be released on August 22 by 23:30GMT and the August manufacturing PMI, due early on the same day for further direction in the debt market.
At close, the yield on the benchmark 10-year JGB note, which moves inversely to its price, slumped 9 basis points to -0.238 percent, the yield on the long-term 30-year suffered 1-1/2 basis points to 0.181 percent and the yield on short-term 2-year plunged 16 basis points to -0.299 percent.
"Ahead of Jackson Hole, headline risks starting from Friday, Sino-US tensions remain near a boil with late Tuesday comments from US Secretary of State Pompeo on Huawei. Overall, EUR-USD expected to remain top heavy while GBP-USD may base build while it can (with EUR-GBP seen top heavy). Risk appetite levels we think remain fragile with USD-JPY looking suppressed again and the AUD-USD dead in the water," OCBC Treasury Research reported.
Meanwhile, the Nikkei 225 index closed tad -0.28 percent down at 20,618.57.