JGBs remain flat in subdued session ahead of BoJ’s monetary policy decision

Japanese government bonds remained flat during late Asian session Wednesday as investors remained side-lined in choppy trade amid lack of significant economic data. Investors will now wait to watch the Bank of Japan’s (BoJ) monetary policy decision, scheduled to be unveiled on June 15 for further direction in the debt market.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, hovered around 0.05 percent, the yield on the long-term 30-year note flat at 0.73 percent and the yield on short-term 2-year remained steady at -0.13 percent by 05:00 GMT.

The BoJ’s policymakers will debate this week whether structural factors may be behind recent disappointingly slow inflation, which could force them to cut the central bank's price forecasts at a quarterly review in July.

The central bank is not expected to changes policy settings. But it could look more closely at the role technology and innovation play in keeping price growth low after surprisingly weak inflation dashed hopes that record profits could nudge firms into hiking prices at the start of the current fiscal year in April, the Business Standard reported.

Meanwhile, the Nikkei 225 index traded 0.41 percent higher at 22,971.50 by 05:10 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bearish at -109.79 (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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