JGBs slide on hopes of rise in Q4 GDP; BoJ’s monetary policy decision in focus

The Japanese government bonds slid Tuesday as investors hope to see a slight upward push in the country’s fourth-quarter gross domestic product (GDP), scheduled to be released on March 7. Also, the Bank of Japan’s (BoJ) two-day monetary policy meeting, due to be concluded on March 9 will add further direction to the debt market.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose nearly 1 basis point to 0.05 percent, the yield on the long-term 30-year note flattened at 0.74 percent and the yield on short-term 2-year traded tad higher at -0.16 percent by 05:30 GMT.

According to the latest Reuters poll, a majority of the analysts see the Japanese economy expanding at a faster growth rate in the final quarter of 2017 versus previously estimated, boosted by bullish capital expenditure.

The poll also found the Bank of Japan is expected to keep its short-term interest rate at minus 0.1 percent and the 10-year government bond yield target at around zero percent when policymakers meet on March 8-9.

Meanwhile, the Nikkei 225 index jumped 1.80 percent to 21,418.00 by 05:35 GMT, while at 04:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 2.36 (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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