JGBs tad lower following upbeat exports, higher-than-expected trade balance in July

The Japanese government bonds remained tad lower Thursday, following higher-than-expected trade balance for the month of July, with exports remaining upbeat during the period.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, rose 1/2 basis point to 0.05 percent, the yield on long-term 30-year traded flat at 0.86 percent and the yield on short-term 2-year also hovered around -0.11 percent by 05:40 GMT.

Japan's exports rose for an eighth straight month in July on robust shipments to the United States and a boost from a weak yen, suggesting the economy is carrying strong momentum through to the second half of the year.

Exports rose 13.4 percent from a year earlier (estimate 13.2 percent). Imports increased 16.3 percent from a year earlier (estimate 17.1 percent). The trade surplus was JPY418.8 billion (USD3.81 billion) (estimate +327.1 billion yen). Export volume rose 2.6 percent from a year earlier, a sixth consecutive monthly gain.

Meanwhile, Japan’s Nikkei 225 traded 0.09 percent lower at 19,711.50 by 05:50GMT, while at 05:00GMT, the FxWirePro's Hourly Yen Strength Index remained highly bullish at 102.50 (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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