JGBs remain flat in silent session after household spending disappoints; Q1 2018 GDP in focus

The Japanese government bonds remained flat during mid-Asian session Tuesday after the country’s household spending disappointed market sentiments. Also, investors will now remain focused on Japan’s first-quarter 2018 gross domestic product (GDP), scheduled to be released on June 7 by 23:50GMT.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.05 percent, the yield on the long-term 30-year note flattened at 0.73 percent and the yield on short-term 2-year traded 1/2 basis point higher at -0.12 percent by 03:50GMT.

The Japanese economy is expected to have contracted for the first time in two years in the first quarter due to weak private consumption and softer export demand, a Reuters poll showed on Friday. A negative reading, while slight, would snap Japan's longest period of economic expansion -- eight straight quarters of growth - since its 1980s bubble economy.

However, analysts believe that the expected January-March weakness may be only a temporary soft patch, arguing that higher prices for fresh vegetables and bad winter weather likely weighed on consumer spending in the quarter.

Meanwhile, the Nikkei 225 index traded 0.11 percent higher at 22,495.50 by 03:50 GMT, while at 03:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bearish at -170.55 (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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