JGBs slump following upbeat producer inflation data; Q3 GDP data in focus

Japanese bonds slumped Monday following higher-than-expected producer inflation data for October. In addition, markets will now focus on the upcoming third-quarter gross domestic product (GDP) data.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1 basis point to 0.051 percent, the yield on long-term 40-year climbed 2 basis points to 0.984 percent and the yield on short-term 2-year up over 1 basis point to -0.167 percent by 03:50 GMT.

Japan PPI for October rose +3.4 percent y/y, beating market expectations of +3.1 percent growth, up from prior 3.0 percent. On a monthly basis, it climbed +0.3 percent m/m, higher than the market expectations 0.1 percent m/m, up from prior 0.2 percent.

Japan's economy was expected have grown for a seventh straight quarter in July-September, a period of unbroken expansion last seen between 1999 and 2001, a Reuters poll found on Friday. Gross domestic product (GDP) is expected to have grown at an annualized rate of 1.3 percent in the third quarter, the poll of 20 analysts showed.

Meanwhile, Japan’s Nikkei 225 fell 0.62 percent to 22,538.50 at 03:55 GMT, while at 03:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at -6.18 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest