JGBs trade flat post lower-than-expected Q1 GDP

The Japanese government bonds traded flat Thursday, post the release of the country’s gross domestic product (GDP) for the first quarter of this year, released earlier today.

The benchmark 10-year bond yield, which moves inversely to its price, hovered around 0.06 percent, the long-term 30-year bond yields struggled tad higher by nearly 1 basis point at 0.84 percent while the yield on the short-term 2-year note traded flat at -0.10 percent by 08:00 GMT.

Japan's economic growth was much weaker in the first quarter than initially estimated, the Cabinet Office said, but analysts made light of the decline as a "one-off" adjustment in oil inventories that would not thwart recovery.

The world's third largest, expanded at an annualised rate of 1.0 percent in the first quarter, less than half the initial estimate of 2.2 percent growth and 2.4 percent gain seen by economists, Cabinet Office data showed on Thursday.

Lastly, the Bank of Japan is now expected to stand pat at its next rate review on June 15-16, although a majority of the economists in a Reuters poll last month forecast the BoJ's next move would be to pull back its stimulus.

Meanwhile, Japan’s Nikkei 225 closed 0.38 percent lower at 19,909.26, while at 08:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at -31.99 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex