JGBs tad lower after December retail sales top expectations; focus remains on industrial production data

The Japanese government bonds remained tad lower during Asian session Wednesday after the country’s retail sales for the month of December topped market expectations and now, focus has turned towards the industrial production data for the month of December, scheduled to be released on January 30 by 23:50GMT.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, remained 1/2 basis point higher at 0.005 percent, the yield on the long-term 30-year rose 1 basis point to 0.661 percent while the yield on short-term 2-year plunged 16 basis points to -0.159 percent by 05:30GMT.

Japan retail sales were up a seasonally adjusted 0.9 percent on month in December, data released by the Ministry of Economy, Trade and Industry showed on Wednesday, exceeding expectations for an increase of 0.4 percent following the downwardly revised 1.1 percent decline in November (originally -1.0 percent).

On a yearly basis, retail sales advanced 1.3 percent - again exceeding expectations for an increase of 1.0 percent following the 1.4 percent gain in the previous month. Large retailer sales were down 1.0 percent on year, beating forecasts for a decline of 1.1 percent following the 2.2 percent drop a month earlier.

Meanwhile, the Nikkei 225 index closed 0.44 percent lower at 20,574.50 by 05:35GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bearish at --24.75 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex