The Japanese government bonds traded flat Monday as investors remained cautious ahead of the country’s 10-year as well as super-long 30-year auction scheduled to be held on September 5 and 7 by 03:45GMT respectively. Also, Japan’s final estimate of second-quarter gross domestic product (GDP) is due on September 7 by 23:50GMT will add further direction to the debt market.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.01 percent, the yield on the long-term 30-year flat at 0.82 percent and the yield on short-term 2-year traded tad higher at -0.15 percent by 04:20 GMT.
Japan’s capital spending rose by 1.5 percent in Q2, well under consensus expectations for a rise of 7.9 percent. The small rise was despite a weaker yen and firmer overseas demand.
Japan’s gross domestic product grew by an annualized 4 percent in the three months ended June, according to a preliminary estimate from Japan’s Cabinet Office. That was well up from revised growth of 1.5 percent in the March quarter (previously 1 percent) and came in far above a median forecast of 2.5 percent from economists surveyed by Reuters.
Meanwhile, Japan’s Nikkei 225 slumped 1 percent to 19,505.50 by 04:20GMT, while at 04:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at 10.05 (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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