JGBs slip in mild trading ahead of 30-year auction, Q1 2018 GDP

The Japanese government bonds slipped on the first trading day of the week Monday amid a muted trading session that witnessed data of little economic significance. Investors will now, remain focused on the country’s super-long 30-year auction and the quarter gross domestic product (GDP) for the first quarter of this year, scheduled for May 15 by 03:45GMT and 23:50GMT respectively.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, remained tad higher at 0.04 percent, the yield on the long-term 30-year note rose 1/2 basis point to 0.74 percent and the yield on short-term 2-year traded flat at -0.13 percent by 05:00GMT.

The Japanese economy is expected to have contracted for the first time in two years in the first quarter due to weak private consumption and softer export demand, a Reuters poll showed on Friday. A negative reading, while slight, would snap Japan's longest period of economic expansion -- eight straight quarters of growth - since its 1980s bubble economy.

However, analysts believe that the expected January-March weakness may be only a temporary soft patch, arguing that higher prices for fresh vegetables and bad winter weather likely weighed on consumer spending in the quarter.

Meanwhile, the Nikkei 225 index traded 0.42 percent higher at 22,854.50 by 05:05 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -32.81 (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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