Japanese bonds remain flat after long weekend ahead of June trade balance, national CPI

The Japanese government bonds remained flat during Asian session Tuesday after returning from a long weekend as investors wait to watch the country’s trade balance data for the month of June and national consumer price inflation data for the same period, scheduled to be released on July 18 and 19 by 23:50GMT and 23:30GMT respectively.

The yield on Japan’s benchmark 10-year bond, which moves inversely to its price, remained flat at 0.04 percent, the yield on the long-term 30-year hovered around 0.68 percent and the yield on short-term 2-year too traded steady at -0.12 percent by 05:00GMT.

The International Monetary Fund (IMF) kept its 2018-19 forecast of 3.9 percent unchanged, but warned of less even expansion and rising trade tensions. In particular, IMF marked down Euro area and Japan’s growth prospects.

With Wall Street moribund and UST bond yields edging higher overnight, Asian markets may similarly trade a cautious range today.

Meanwhile, the Nikkei 225 index traded nearly 1 percent higher at 22,794.00 at 05:10, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained slightly bearish at -126.83 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex