JGBs inch down amid caution for US inflation data
The two-year JGB yield rose 0.5 basis point (bp) to 0.77% and the five-year yield rose 1 bp to to 1.045%.
Yields move inversely to bond prices.
'Investors cannot make active bets as they are not sure in which way the price data will move,' said Naoya Hasegawa, chief bond strategist at Okasan Securities.
The market also awaited an auction for five-year bonds in the next session, which may witness a stable outcome.
'The auction will not receive strong demand given the current level of the five-year bond yield. But there is little upward pressure on the yields, so there will not be any negative surprise,' Hasegawa said.
Also, the auction may be supported by demand from pension funds, which need to rebalance their portfolios amid a sharp recent rally in Japanese stocks.
Pension funds, such as the Government Pension Investment Fund (GPIF), have allocation targets for each asset in their portfolios. When stocks rise, they need to boost bond holdings to maintain that composition.
Both Japan's Nikkei share average and the broader Topix rose to a record high on Tuesday.
The 10-year JGBs have not been traded as of 0450 GMT.
The 20-year JGB yield rose 1 bp to 2.52%.
The 30-year JGB yield rose 2 bps to 3.090%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
an hour ago
- Business Recorder
Toronto stocks jump as US inflation data keep rate-cut hopes alive
Canada's main stock index edged higher on Tuesday, as benign U.S. inflation data reinforced expectations for an interest-rate cut by the country's Federal Reserve in September. At 09:50 a.m. ET (1350 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 0.26% at 27,847.43 points and was trading near record levels. The communications sector led the advances on TSX by rising 1.24%, followed by a 0.8% rise in healthcare. A Labor Department report showed U.S. consumer prices rose 0.2% in July after a 0.3% gain in June. On a year-over-year basis, CPI advanced 2.7%, slightly below the 2.8% forecast from economists polled by Reuters. The data maintained the case for a Fed rate cut next month, according to traders' bets in futures markets. 'Inflation is on the rise, but it didn't increase as much as some people feared,' said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. 'In the short term, markets will likely embrace these numbers because they should allow the Fed to focus on labor-market weakness and keep a September rate cut on the table.' An additional boost came from seemingly subsiding trade tension between the world's top two economies. U.S. President Donald Trump extended a tariff truce with China to November 10, averting triple-digit duties on Chinese goods. Canada's materials index added 0.5%, thanks to rising copper prices due to the China tariff deadline extension. However, the trade tension between China and Canada showed no signs of easing. Beijing announced a preliminary anti-dumping duty on Canadian canola imports, a fresh escalation in a year-long trade dispute that began with Ottawa's imposition of tariffs on Chinese electric vehicle imports last August. In other stocks, Gildan Activewear fell more than 9% after the Financial Times reported that the apparel manufacturer is nearing an about $5 billion deal to acquire Hanesbrands, including debt.
Business Recorder
2 hours ago
- Business Recorder
New York cocoa prices climb while coffee turns lower
LONDON: New York cocoa futures rose on Tuesday, buoyed by fund short-covering against a backdrop of concern over the outlook for production in top grower Ivory Coast. Cocoa New York cocoa rose 2.9% to $8,688 a metric ton by 1408 GMT, climbing back towards Monday's six-week high of $8,823. Dealers said the market had gained support this week from concern over Ivory Coast's coming crop, with the initial upward move on Monday helping to trigger short-covering by funds. More sunny spells across most of Ivory Coast's cocoa-growing regions will help to boost development of the next October-to-March main crop, farmers said on Monday, adding that cold weather continued last week with below-average rainfall. London cocoa gained 2.05% to 5,830 pounds a ton. Coffee Arabica coffee futures were down 1.5% at $3.1580 per lb after touching a six-week high of $3.27. Dealers said reports of light, spotty frosts in some Brazilian coffee areas had contributed to the run-up in prices this week, though the harvest continues to progress well. Temperatures, however, are expected to moderate in the coming days. 'A cold air mass will retreat from southeast Brazil over the next three days, though it will linger near the southern border until early next week,' Marcin Gorski, analyst with LSEG Weather and Climate Research, said in a report. Robusta coffee fell 1.5% to $3,610 a ton. Sugar Raw sugar ?????rose 2.55% to 16.91 cents per lb. Dealers said the market had been steadily climbing after hitting a one-month low of 15.92 cents in early August, with speculators beginning to scale back a large net short position. White sugar gained 2.1% to $484.80 a ton.
Business Recorder
2 hours ago
- Business Recorder
KSE-100 closes above 147,000 for first time in history
The Pakistan Stock Exchange (PSX) continued its record-breaking rally as its benchmark KSE-100 Index closed Tuesday's session above 147,000, another all-time high. The KSE-100 started the session with a strong buying spree, hitting an intra-day high of 147,976.98, followed by selling in the latter hours, which erased most of the earlier gains. However, at close, the benchmark index still managed to closed above 147,000 for first time in history. It settled at 147,005.32, up by 75.48 points or 0.05%. Positive momentum in BAFL, HBL, and SYS provided a combined uplift of 295 points, offering partial reprieve against broader market weakness. In contrast, significant downward pressure stemmed from FFC, MARI, OGDC, PSO, and BAHL, which together shaved off 527 points from the benchmark, brokerage house Topline Securities said in its post-market report. Analysts attributed the investor optimism to encouraging corporate earnings and reports of upcoming US investments in Pakistan's energy sector. In an informal discussion upon his return from the United States, Finance Minister Muhammad Aurangzeb said that Pakistan will soon receive encouraging news of substantial investments across various sectors from the US. The minister described the trade talks with the US as a major success for the country, noting that Pakistan is moving in the right direction and the results will be visible soon. On Monday, the bulls stamped their authority on the PSX, as the benchmark KSE-100 Index surged 1,547.05 points, or 1.06%, to close at 146,929.84. Globally, most Asian stocks rose on Tuesday, buoyed by an extension of a tariff truce between the world's two largest economies, while Japanese shares hit an all-time peak, powered by tech shares after returning from a long weekend break. US President Donald Trump extended a tariff truce with China by another 90 days on Monday, staving off triple-digit duties on Chinese goods, a move that was largely expected by investors and markets. Investor sentiment in recent weeks has been supported by expectations of rate cuts by the US Federal Reserve, resilient US corporate earnings, and clarity on US trade levies on trading partners. Japan's Nikkei climbed to a record high and was last up 2% as the country's markets reopened after a public holiday on Monday, tracking other global indices this year. Australia's benchmark index also hit a record high, ahead of a monetary policy meeting at which the central bank is widely expected to cut interest rates. That left MSCI's broadest index of Asia-Pacific shares outside Japan a tad higher. China's blue-chip stocks were flat while Hong Kong's Hang Seng index eased 0.1% in early trading. Meanwhile, the Pakistani rupee maintained its upward momentum against the US dollar, appreciating 0.01% in the inter-bank market on Tuesday. At close, the currency settled at 282.42, a gain of Re0.03. Volume on the all-share index increased to 691.66 million from 611.21 million recorded in the previous close. The value of shares rose to Rs44.58 billion from Rs44.00 billion in the previous session. Yousuf Weaving was the volume leader with 46.27 million shares, followed by Kohinoor Spining with 39.95 million shares, and Invest Bank with 34.39 million shares. Shares of 482 companies were traded on Tuesday, of which 208 registered an increase, 242 recorded a fall, while 32 remained unchanged.
