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JGBs nearly flat as investors remain cautious ahead of Q2 GDP data

Japanese government bonds traded nearly flat Thursday as investors remain cautious amid hopes of an improvement in the country’s second-quarter gross domestic product (GDP), scheduled to be released today by 23:50GMT.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, traded flat at 0.111 percent, the yield on the long-term 30-year note slipped slightly to 0.858 percent and the yield on short-term 2-year hovered around -0.107 percent by 05:10 GMT.

According to a report from the FXStreet, analysts at Nomura said "We expect gradual growth overall, albeit not to the same extent as through mid-2017, when GDP grew considerably more than the potential growth rate. We expect the global economy to gradually decelerate while avoiding a sharp slowdown, and look for the Japanese economy to continue growing albeit with little sign of an acceleration. We think investors should be aware of additional downside risks to overseas demand in the shape of US trade policy and a sharp slowdown in emerging economies".

Meanwhile, the Nikkei 225 index traded 0.09 percent lower at 22,624.00 by 05:15 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 62.10 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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