JGBs trade downside after industrial production remains unchanged in July

The Japanese government bonds traded on the downside after the country’s industrial production declined as initially estimated in July, at the same levels as was witnessed in June.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.02 percent, the yield on long-term 30-year rose 1/2 basis point to 0.83 percent and the yield on short-term 2-year traded flat at -0.14 percent by 04:55 GMT.

Japan's industrial production declined as initially estimated in July, latest figures from the Ministry of Economy, Trade and Industry said on Thursday. Industrial production dropped a seasonally adjusted 0.8 percent month-over-month in July, reversing a 2.2 percent rise in June. That was in line with the flash data published on August 31.

Shipments fell 0.7 percent over the month, confirming the preliminary report. Inventories slid 1.1 percent instead of a 1.2 percent decrease reported earlier. On a yearly basis, industrial production growth eased to 4.7 percent in July from 5.5 percent in the preceding month.

Meanwhile, Japan’s Nikkei 225 fell 0.21 percent to 19,823.45 by 05:30GMT, while at 05:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at -72.36 (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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