JGBs edge slightly lower despite expectations of fall in Q1 2018 GDP, April national core CPI

Japanese government bonds edged slightly lower on Tuesday even as investors expect to see a downward shift in the country’s first-quarter gross domestic product (GDP) data scheduled to be released later today.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, rose 1 basis point to 0.05 percent, the yield on the long-term 30-year note remained tad higher at 0.75 percent and the yield on short-term 1-year remained nearly flat at -0.12 percent by 05:00 GMT.

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 lower at 22,841.50 by 05:05 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bearish at -109.24 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest