JGBs trade mixed in silent session ahead of August household spending data

Japanese government bond prices traded mixed on the first trading day of the week Monday amid a silent trading session that witnessed data of little economic significance ahead of the country’s household spending data for the month of August, scheduled to be released later this week for further direction in the debt market.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, rose 1/2 basis point to 0.130 percent, the yield on the long-term 30-year note jumped 1-1/2 basis points to 0.926 percent and the yield on short-term 2-year slipped nearly 1 basis point to -0.111 percent by 05:40GMT.

With the start of Q4 2018, financial markets are likely to be watching out for progress of the US-Canada last minute negotiations for NAFTA, UK’s Conservative party annual conference and the fate of PM May, the EC’s response to Italy’s proposed 2.4 percent budget deficit, RBA and RBI policy decisions, as well as the US’ September labour market report this week. 

Meanwhile, the Nikkei 225 index rose 0.55 percent to 24,275.00 by 05:50GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -14.17 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex