Japanese government bonds remained tad higher Tuesday, following expectations of a decline in the country’s fourth-quarter gross domestic product (GDP), scheduled to be released today by 23:50GMT.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slipped 1/2 basis point to 0.06 percent, the yield on the long-term 30-year note fell nearly 1 basis point to 0.80 percent and the yield on short-term 2-year remained tad lower at -0.14 percent by 04:40 GMT.
Japan's economy was expected to grow for an eighth straight quarter in October-December, the longest period of expansion in about 30 years, a Reuters poll found on February 2, led by robust exports and solid domestic demand.
Gross domestic product (GDP) was estimated to have expanded at an annualized rate of 0.9 percent in the fourth quarter of last year, the poll of 19 analysts found. That would be the longest streak of growth since a 12-quarter stretch of growth between April-June 1986 and January-March 1989 around the height of Japan's notorious economic bubble.
The pace of growth likely slowed in the fourth quarter from the annualized 2.5 percent growth of the third quarter, but analysts believe the deceleration will be temporary.
Meanwhile, the Nikkei 225 index rose 0.34 percent to 21,455.00 by 04:45 GMT, while at 04:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bullish at 136.81 (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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