JGBs flat in subdued trading session; investors eye March trade balance

The Japanese government bonds remained flat Monday amid a subdued trading session that witnessed data of minimum economic significance. Also, major markets remain closed today, on the account of Easter holidays, which further lent sluggishness to the debt market.

The benchmark 10-year bond yield, which moves inversely to its price, traded flat at 0.01 percent, the long-term 15-year bond yields also hovered around 0.74 percent and the yield on the short-term 2-year note stood steady at -0.22 percent by 06:00 GMT.

The Bank of Japan (BoJ) Governor Haruhiko Kuroda, in his latest speech today, said that there is need to continue with policy easing till the central bank’s 2 percent inflation goal is reached, which indeed, seems a long way to go. Further, Kuroda said that the BOJ needs to closely monitor consumer prices because they are lacking some upward momentum.

Further, Japanese stocks eked out small gains in thin and choppy trade on Monday, with retail investors hunting for small-to-mid cap stocks in the absence of foreign investors due to the Easter holiday.

Lastly, investors are looking forward to the release of March trade balance data, scheduled for April 20 for further direction in the bond market.

Meanwhile, Japan’s Nikkei 225 closed 0.10 percent higher at 18,355.26, while at 06:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at 62.48 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex