TOKYO: Japanese government bond prices were steady to slightly higher on Wednesday, supported by a weakening global outlook, and ahead of the European Central Bank's policy meeting later in the week.
But futures were capped by a cloud top on the daily Ichimoku chart.
The 10-year JGB futures rose 0.05 in price to 144.12 , though they were capped by the resistance from the Ichimoku cloud top at 144.20. They have been unable to break above that cloud for the past three sessions.
Still the market is supported by expectations that the global economy is in for a rough ride, with many market players now focusing on the ECB's measures to tackle the euro zone's debt crisis.
"Chinese is economy is visibly slowing and the outlook of Japan's industrial output has turned softer recently. The weak economic fundamentals are supporting the market," said Takeo Okuhara, fund manager at Daiwa SB Investments.
Many investors now look to what actions ECB President Mario Draghi will take at the central bank's policy meeting on Thursday.
The bank is expected to outline a bond buying plan, though its detail will probably have to wait until after a German constitutional court rules on whether Europe's planned new rescue fund is legal on Thursday next week.
The 10-year cash bond yield stood flat at 0.805 percent While the 30-year bond yield fell 0.5 basis point to 1.865 percent.
Until the global economic picture becomes more clearer, the 10-year yield may be stuck between its Aug 16 high of 0.860 percent and nine-year low of 0.720 percent set on July 24, some market players said.
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