JGBs gain despite better-than-expected March trade balance data; national CPI in focus

The Japanese government bonds gained Wednesday as investors have largely shrugged-off the better-than-expected reading of the country’s trade balance data for the month of March, released late Tuesday. Investors are now awaiting Japan’s national consumer price inflation (CPI) data for the same period, due on April 19 by 23:30GMT.

As of Wednesday, the yield on the benchmark 10-year JGBs, which moves inversely to its price, remained tad lower at 0.03 percent, the yield on the long-term 30-year note slipped 1/2 basis point to 0.70 percent and the yield on short-term 2-year hovered around at -0.14 percent by 04:35 GMT.

Japan’s exports rose 2.1 percent in March from a year earlier, Ministry of Finance data showed on Wednesday, due to a rebound in shipments to China. The result compared with a 4.7 percent increase expected by economists in a Reuters poll. It followed a 1.8 percent rise in the prior month.

Imports fell 0.6 percent in the year to March, versus the median estimate of a 5.4 percent increase. The trade balance came to a surplus of JPY797.3 billion (USD7.45 billion), versus the median estimate of a JPY498.3 billion surplus.

Meanwhile, the Nikkei 225 index jumped nearly 1.50 percent to trade at 22,158.50 by 04:40 GMT, while at 04:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bearish at -136.00 (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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