Japanese bonds trade nearly flat as investors eye January inflation data

Japanese bonds traded nearly flat on Wednesday as investors eyed January consumer inflation data scheduled to be released on Thursdayat 23:30GMT. Also, the market now look ahead to the marquee event for the week in the Wednesday release of minutes from the 30-31 FOMC meeting.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, traded flat at 0.062 percent, the yield on the long-term 30-year note remained steady at 0.790 percent and the yield on short-term 2-year stood flat at -0.150 percent by 02:30 GMT.

Japan’s Markit flash manufacturing purchasing manager’s index (PMI) fell to 54 in February down from 54.8 in January and closer to the 50-point line separating growth from contraction. This was largely driven by the slower pace of growth in new orders.

Moreover, in its daily open market operation held on Wednesday, the Bank of Japan bought JPY250 billion of to 1-3 year JGBs, JPY330 billion worth of bonds of 3-5 years of maturity and JPY450 billion worth of bonds of 5-10 years of maturity.

In the United States, Treasuries were greeted by downward pressure across the curve to open the week on Tuesday during a relatively quiet session light on data of great significance. Overall, the highlight of the day was largely limited to a relatively well-received 2-year note auction. Markets now look ahead to the marquee event for the week in the Wednesday release of minutes from the 30-31 FOMC meeting.

Meanwhile, the Nikkei 225 index traded 0.78% higher at 22,096.5 by 02:30 GMT, while at 03:00GMT, the FxWirePro's Hourly JPY Strength Index remained slightly bearish at -80.21 (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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