JGBs flat as investors await BoJ’s monetary policy decision, April industrial production

The Japanese government bonds remained flat Monday, as investors wait to watch the Bank of Japan’s (BoJ) 2-day monetary policy decision, scheduled to be unveiled on June 16.

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 0.52 percent lower at 19,908.58, while at 06:00GMT, the FxWirePro's Hourly Yen Strength Index remained highly bearish at -113.50 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex