JGBs fall after Q2 final GDP cheers investors; super-long 30-year auction in focus

Japanese government bonds fell during Asian session Monday after the country’s final gross domestic product (GDP) for the second quarter of this year cheered market participants. Investors will now wait to watch the country’s super-long 30-year auction, scheduled to be held on September 11 for further direction in the debt msrket.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, traded 1/2 basis point higher at 0.114 percent, the yield on the long-term 30-year note also remained tad higher at 0.849 percent and the yield on short-term 2-year hovered around -0.108 percent by 05:20GMT.

According to a report from Reuters, Japanese gross domestic product (GDP) expanded at an annualised rate of 3.0 percent in April-June, much faster than a preliminary estimate of 1.9 percent growth issued last month, revised data from the Cabinet Office showed on Monday. The revised figure also outpaced economists’ median estimate for 2.6 percent annualised growth in a Reuters poll.

Meanwhile, the Nikkei 225 index traded 0.21 percent higher at 22,359.00 by 05:25GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bullish at 121.48 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex