JGBs remain tad lower in muted trading session ahead of May national consumer price inflation

The Japanese 10-year government bonds remained tad lower during late Asian session Thursday as investors remained side-lined in a muted trading day ahead of the country’s national consumer price inflation (CPI) for the month of May, scheduled to be released today by 23:50GMT.

The yield on Japan’s benchmark 10-year bond, which moves inversely to its price, rose 1/2 basis point to 0.04 percent, the yield on the long-term 30-year also remained tad higher at 0.72 percent and the yield on short-term 2-year traded nearly 1 basis point higher at -0.12 percent by 05:00 GMT.

A Bank of Japan policymaker was negative about the removal of a projection for when inflation would reach the central bank’s 2 percent target, from a quarterly report, minutes of the bank’s April policy meeting showed on Wednesday.

The member of the BOJ’s Policy Board expressed concern that the deletion “could weaken the effects of the commitment” to the inflation target, according to the minutes of the April 26-27 meeting. 

Further, the minutes also showed that BoJ board members shared recognition that prices are expected to be exposed to greater downside risks than upside ones in fiscal 2019 and later. Many participants of the meeting mentioned the need to pay “due attention” to protectionist U.S. trade policies and possible backlashes from other countries, according to the minutes

Meanwhile, the Nikkei 225 index traded 0.89 percent higher at 22,755.50 by 05:20 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -59.65 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex