Japanese government bonds remained flat in a silent trading session ahead of the Chinese Lunar New Year, as investors have largely shrugged-off the higher-than-expected industrial production for the month of December, released early today.
The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.06 percent, the yield on the long-term 30-year note remained flat at 0.79 percent and the yield on short-term 2-year steadied around -0.15 percent by 04:50 GMT.
Japan’s economy posted its longest continuous expansion since the 1980s boom as fourth-quarter growth was boosted by consumer spending, and moved Prime Minister Shinzo Abe’s revival plan another step closer to vanquishing decades of stagnation.
However, the economy expanded at a 0.5 percent annualized rate in October-December, less than the median estimate for annualized growth of 0.9 percent, Cabinet Office data showed on Wednesday. That followed a revised 2.2 percent annualized increase in July-September.
Compared to the previous quarter, gross domestic product (GDP) grew 0.1 percent, slightly less than the median estimate of 0.2 percent growth and following a 0.6 percent quarter-on-quarter expansion in July-September, Cabinet Office data showed on Wednesday.
Meanwhile, the Nikkei 225 index jumped 1.54 percent to 21,483.00 by 04:55 GMT, while at 04:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 44.55 (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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