Investors in Asia batten down forward of UK vote, Comey testimony and ECB

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HONG KONG Asian bonds steadied on Wednesday though investors were heedful forward of an choosing in Britain, a European Central Bank meeting, and testimony during a Senate Intelligence Committee conference by James Comey, a former FBI arch dismissed by President Donald Trump.

MSCI’s broadest index of Asia-Pacific shares outward Japan .MIAPJ0000PUS crept adult 0.1 percent, with Hong Kong and mainland China bonds heading a segment higher.

European bonds are set to counterpart a discreet tinge with vital index batch futures suggesting a temperate start. FFIc1

Japanese bonds .N225 were a categorical laggards as investors lightened land after a pivotal index strike a near-two year high final Friday in skinny trading.

Hong Kong .HSI, however, benefited from postulated shopping by mainland Chinese investors.

All a events scheduled for Thursday are diligent with risk for investors, though testimony by former FBI arch James Comey acted a intensity risk to Trump’s mercantile agenda, and maybe even his presidency.

“The marketplace is generally focused on Comey’s testimony,” pronounced Hikaru Sato, a comparison technical researcher during Daiwa Securities.

Reports advise Comey skeleton to exhibit conversations in that Trump allegedly pressured him to dump his review into former National Security Adviser Mike Flynn, who was dismissed for unwell to divulge conversations with Russian officials.

Risk-off view pushed supervision bond prices adult and yields lower, while propping adult bullion and a Japanese yen.

Ten-year U.S. Treasury yields US10YT=RR quickly fell to seven-month lows of 2.129 percent, a lowest given Nov. 10, before recuperating to 2.16 percent.

The timorous U.S. bond yields serve enervated a dollar, already disabled by heightened domestic uncertainty.

The dollar wallowed nearby a six-week low opposite a safe-haven yen JPY=, quoted around 109.44 yen.

Sterling GBP=D4 firmed to 1.2905 per dollar, though hold in a parsimonious trade operation forward of Thursday’s vote.

Earlier opinion polls suggested a antithesis Labour Party were probably neck-and-neck with a statute Conservatives, though a check expelled on Tuesday put Prime Minister Theresa May on march to boost her parliamentary majority.

The euro EUR=EBS also hold organisation during $1.12665 opposite a dollar.

The ECB process assembly could lead to some contention of dropping some of a executive bank’s pledges to ramp adult impulse if needed, 4 people with approach believe of a discussions told Reuters final week. In this high risk environment, bullion XAU= was in favor, quoted around a $1,294 per ounce. It has gained scarcely 7 percent in a past month.

The Australian dollar AUD=D4 strengthened to a one-month high of $0.7540 after first-quarter expansion numbers forced brief covering by those investors who had approaching a weaker performance.

Oil prices remained weak, with Brent wanton futures struggling around $50 per barrel, notwithstanding tensions between Gulf Arab producers and descending U.S. inventories.

Brent wanton futures LCOc1 were trade during $50.06 per tub down 0.1 percent. U.S. West Texas Intermediate (WTI) wanton futures CLc1 were during $48.12 per barrel, down 0.1 percent.

(Additional stating by Ayai Tomisawa in TOKYO; Editing by Simon Cameron-Moore)

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