JGBs fall after July retail sales beat market expectations; industrial production, unemployment rate in focus

Japanese government bonds fell Thursday after the country’s retail sales for the month of July beat market expectations, albeit down from the previous reading in June, also revised lower. Investors will now wait to watch the country’s unemployment rate and industrial production for the month of July, scheduled to be released on August 30 by 23:50GMT for further direction in the debt market.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, rose 1 basis point to 0.111 percent, the yield on the long-term 30-year note also gained 1 basis point to 0.852 percent and the yield on short-term 2-year hovered around -0.108 percent by 06:00GMT.

According to a report from Reuters, Japan’s 1.5 percent annual increase in retail sales topped the Reuters poll median forecast for 1.2 percent, trade ministry data showed on Thursday. It followed a 1.7 percent gain in June. On a seasonally-adjusted basis, retail sales grew just 0.1 percent in July from the previous month, far below June’s 1.4 percent increase.

Meanwhile, the Nikkei 225 index closed 0.09 percent higher at 22,869.50, while at 06:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -25.12. For more details, visit http://www.fxwirepro.com/currencyindex