JGB Edge Higher Amid Middle East Tensions
0019 GMT — JGBs edge higher in price terms amid Middle East tensions that typically support the safe-haven allure of government debt. Investors may also closely monitor the Japanese Finance Ministry's auction today of about 2.4 trillion of five-year sovereign notes for any signs of investor demand. Expectations for BOJ rate increases are unlikely to strengthen, SMBC Nikko Securities' Lisa Mochizuki says, citing factors including Gov. Ueda's press conference earlier this week. However, 'supply/demand dynamics work against five-year JGBs,' the junior analyst says in a note. The five-year auction is expected to produce 'rather weak' results, the junior analyst adds. The 10-year JGB yield is down 1 bp at 1.445%. (ronnie.harui@wsj.com)
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