Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Japanese bonds steady in lacklustre trade, inflation data in focus

The Japanese bonds traded nearly flat Wednesday as market awaits inflation data scheduled for Thursday, August 24 at 23:30 GMT. Also, little trading activity is observed in the light of no important economic data or events.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, traded flat 0.036 percent, the yield on long-term 40-year note remained steady at 1.043 percent and the yield on short-term 3-year hovered around -0.129 percent by 04:00 GMT.

According to Reuters, Japan's core consumer prices were expected to show their seventh straight month of annual increases in July, a Reuters poll found, offering the central bank some hope a strengthening economic recovery will gradually lift inflation toward its 2 percent target. But the projected 0.5 percent year-on-year increase will be well off the Bank of Japan's target and keep the central bank under pressure to maintain its massive monetary stimulus, analysts say.

The government will announce the consumer inflation data at 8:30 Tokyo time on August 25 (2350 GMT Aug. 24). The nationwide core consumer price index (CPI), which includes oil products but excludes volatile fresh food prices, rose 0.4 percent in June from a year earlier.

Today, Japan August Nikkei Flash Manufacturing PMI rose to 52.8, a 3-month high, from 52.1 in July. Also, output sub index at climbed to 53.1, from July's 51.4 in July. Also, the markets were jittery after the start of annual military exercises by South Korean and U.S. forces angered North Korea, which denounced the joint drills as a step toward nuclear war.

Moreover, investors await the Federal Reserve’s Jackson Hole Economic Policy Symposium scheduled for this Friday in Wyoming. There are some expectations Federal Reserve Chair Janet Yellen could highlight the need to keep a watchful eye on risks to inflation goals and financial stability at the Jackson Hole meeting. However, the outlook is more or less consistent with a report from Reuters last week that detailed two unnamed sources' expectations that Draghi will not deliver a new stance on the state of monetary policy.

Meanwhile, the Nikkei 225 index traded 0.30 percent higher at 19,442.50 by 04:10 GMT, while at 04:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -57.39 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

  • Market Data
Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.