JGBs gain slightly after Q1 2018 final GDP data disappoints market participants

Japanese government bonds gained slightly during late Asian session Friday after the country’s first quarter 2018 final gross domestic product (GDP) data, released early today disappointed market participants, also remaining unchanged from the preliminary reading.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, remained tad lower at 0.04 percent, the yield on the long-term 30-year note slid 1/2 basis point to 0.71 percent and the yield on short-term 2-year hovered around -0.12 percent by 05:20GMT.

Japan’s economy contracted at an annualized rate of 0.6 percent in January-March, unchanged from a preliminary estimate issued last month, revised gross domestic product data from the Cabinet Office showed on Friday.

The result compared with the median estimate of a 0.4 percent annualized contraction in a Reuters poll of economists. On a quarter-on-quarter basis, GDP fell 0.2 percent in real, price-adjusted terms, also unchanged from the initial reading. The median estimate among economists was for a 0.1 percent decline.

Meanwhile, the Nikkei 225 index slipped 0.42 percent to 22,719.00 by 05:30 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 9.32 (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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