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Yen stays strong as 10 year JGB breaches 0.11, US yield limits dollar downside

Yen trades in a broadly firm tone today as helped by resilient in JGB yield. JGB 10 year yield hit as high as 0.113 today and is hovering around 0.10 at the time of writing. JGB yield could remain firm ahead of tomorrow’s highlight anticipated BoJ meeting. There are speculations that BoJ is considering to tweak its monetary policy to probably target 10 year yield at 0.1%, rather than 0.0%. But so far, it’s believed the discussions are preliminary. And, there is very likely chance of any announce of any sort that carries significance next week.

While Dollar is mixed this in Asia, it’s trading as the third strongest one for the week, next to Canadian Dollar and Yen. The rebound in US treasury yields overnight reaffirmed underlying near term upside momentum. 10 year yield closed up 0.039 to 2.975, making a near high for the week. 30 year yield also gained 0.036 to 3.10. Both are on track for near term resistance at 3.009 and 3.140. The development will, at least, limit downside attempts of Dollar.

Asian markets are mixed today, following US. DOW closed up 0.44% or 112.97 pts to 25527.07. However, thanks to Facebook, NASDAQ dropped -1.01% or -80.06 pts to close at 7852.18. At the time of writing, Nikkei is up 0.33% at 22661.73. Hong Kong HSI is downside -0.25%, China Shanghai SSE is down -0.16%. Singapore Strait Times is down -0.21%.


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