The Japanese government bonds traded tad lower Thursday as investors wait to watch the country’s final estimate of second-quarter gross domestic product (GDP) due later today by 23:50GMT.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, remained flat at 0.003 percent, the yield on long-term 30-year steady around 0.82 percent and the yield on short-term 2-year hovered around -0.15 percent by 02:50 GMT.
Japan’s economy likely grew at a slower pace than initially estimated in the second quarter, on expected downward revisions in capital spending growth. The world’s third-largest economy is seen expanding at an annualized pace of 2.9 percent in April-June, the poll of 17 analysts found, which would be a significant downward revision from the 4.0 percent growth seen in the preliminary data, Reuters reported.
Capital expenditure, a major component of the gross domestic product, is expected to have risen 0.5 percent over the quarter, much slower than the 2.4 percent rise shown in the preliminary data.
Meanwhile, Japan’s Nikkei 225 rose 0.18 percent to 19,392.50 by 04:40GMT, while at 04:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at 74.92 (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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