JGB prices saw some support from softer stock prices earlier, but caution ahead of today's auction erased some gains.
JGB prices saw some support from softer stock prices earlier, but caution ahead of today's auction erased some gains.
The newspaper report this morning that the Bank of Japan is considering steps to limit a rise in interest rates lent some support to the debt market, although some appeared to unload 10-year debt for hedging purposes before the auction tomorrow. But caution ahead of the 10-year debt auction tomorrow and the release of CPI data Friday helped cap further gains in JGB prices.
A pullback in US Treasury prices was behind losses in JGB prices today.
As the equity market rebounded ... JGB market players are now shifting their attention to forthcoming macro-economic data to assess if the data will contain any surprises that could affect the Bank of Japan's monetary policy.
JGB prices got off a firmer start today aided by the bullish tone on the US Treasury market overnight, but then they fell back after the sharp gains in stock prices here.
The JGB market got a lift from a pullback in equity prices here, with bargain hunters emerging.
But if he makes remarks that are more hawkish than the market is expecting to hear, US Treasuries may be sold heavily and that may hurt the JGB market.
JGB prices were bearish. This is mainly because stock prices posted strong gains, while most investors are also cautiously awaiting the results of today's 20-year bond auction.
The JGB market got some lift from losses in stock prices and from index-trackers (funds) stepping in to purchase government debt paper.
© 2020 Inspirational Stories
© 2020 Inspirational Stories