Japanese Govt. Bonds trade tight after may consumer price inflation meets estimates, June manufacturing PMI rises
Source: FxWire Pro - Commentary / 22 Jun 2018 01:27:30 America/New_York
The Japanese 10-year government bonds traded in a tight range on Friday after the country’s national consumer price inflation (CPI) for the month of May met market expectations, although remaining far from the Bank of Japan’s (BoJ) 2 percent target. In addition, Japan’s manufacturing PMI for the month of May recovered, adding to more sluggishness in bond prices.
The yield on Japan’s benchmark 10-year bond, which moves inversely to its price, slipped slightly to 0.03 percent, the yield on the long-term 30-year hovered around 0.71 percent and the yield on short-term 2-year traded flat at -0.13 percent by 05:00 GMT.
According to the Ministry of Internal Affairs and Communications, the country’s core consumer prices increased 0.7 percent in May from a year earlier, as a result of higher energy costs. Prices rose for the 17th straight month, the statistics bureau said, but still remain well below the BoJ lofty 2 percent inflation target.
Further, the Flash Japan Manufacturing PMI rose to 53.1 in June, from 52.8 in May; output growth accelerated, despite a slower rise in new business.
Meanwhile, the Nikkei 225 index traded 0.80 percent higher at 22,527.00 by 05:10 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -64.58 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex© FxWire Pro 2018. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.