JGBs tad higher on hopes of decline in July household spending data amid silent session

Japanese government bonds traded tad higher during late Asian session Thursday as investors expect to see a decline in the country’s household spending data for the month of July, scheduled to be released today by 23:30GMT for further insight into the debt market.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, traded 1/2 basis point lower at 0.109 percent, the yield on the long-term 30-year note also slipped 1/2 basis point to 0.842 percent and the yield on short-term 2-year hovered around -0.114 percent by 05:20GMT.

An auction of JPY2.2 trillion 10-year JGBs on Wednesday attracted strong demand, with bid-to-cover rising to 4.55 from 4.17 in the previous auction. The tail, or the gap between the lowest and average prices, narrowed to 0.01 from 0.12. The results helped to offset worries that the Bank of Japan could reduce the total amount of its bond buying this month after it made changes to its monthly bond-buying plan, Reuters reported.

Meanwhile, the Nikkei 225 index traded 0.50 percent lower at 22,485.50 by 05:25 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained slightly bearish at -77.60 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex