JGBs trade lower after reading higher-than-expected Q1 GDP

The Japanese government bonds trade lower Thursday after reading a higher-than-expected gross domestic product (GDP) for the first quarter of this year.

The benchmark 10-year bond yield, which moves inversely to its price, rose 1 basis point to 0.04 percent, while the long-term 30-year bond yields slumped 2 basis points to 0.81percent and the yield on the short-term 2-year note traded 1/2 basis point higher at -0.14 percent by 06:10 GMT.

Japan’s economy advanced for a fifth straight quarter, the longest expansion in a decade, supported by continued strength in exports. The country’s first quarter GDP rose a more than expected 0.5 percent on quarter and 2.2 percent at an annual pace.

A poll ahead of the data by Reuters showed analysts expected a 0.4 percent quarterly gain and a 1.7 percent annual pace. The data showed the fifth straight quarter of growth and the fastest pace since the first quarter of 2016.

Meanwhile, Japan’s Nikkei 225 closed 1.32 percent lower at 19,553.86, while at 06:00GMT, the FxWirePro's Hourly Yen Strength Index remained slightly bullish at 80.89 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex