The Japanese government bonds traded mixed on Thursday, succumbing to thin trading activity during a relatively quiet session that saw little data of much significance.
The yield on the benchmark 10-year bonds, which moves inversely to its price fell 1/2 basis points to -0.270, short-term 2-year JGB yield fell 1 basis point to record low of -0.340 percent, super-long 40-year bonds rose nearly 3 basis points to 0.084 percent, the yield on 30-year JGB also jumped more than 2 basis points to 0.066 percent and the yield on 20-year JGB also bounced nearly 2 basis points to 0.042 percent (fell below zero to -0.005 percent for the first time on Wednesday) by 07:00 GMT.
Moreover, the Bank of Japan (BoJ) Governor Haruhiko Kuroda said that Japan's economy expected to expand moderately as a trend and consumer inflation is likely to be slightly negative or around 0 percent for the time being.
He further added that financial system is maintaining stability and the BoJ will maintain QQE with negative rates for as long as needed to achieve 2 percent inflation target in a stable manner. The BoJ will take additional easing steps via quantity, quality of asset buying and interest rates if needed, he added.
Interestingly, Japan's MOF, BOJ & FSA officials will be meeting on Friday to discuss financial markets and the effects of Brexit vote.
Lastly, investors will remain keen to focus on the Sunday’s Upper House election in Japan. Meanwhile, the benchmark Nikkei 225 index closed down 0.67 percent at 15,276.24, and the broader Topix index closed lower 0.66 percent to 1,226.09 points.
The material has been provided by InstaForex Company – www.instaforex.com