JGBs gain after exports fall worse-than-expected following Trump’s uncertain trade policies

The Japanese government bonds gained at the start of the week after the country’s exports registered a worse-than-expected decline during the month of January, following hovering uncertainties over the United States President Donald Trump’s trade policies.

The benchmark 10-year bond yield, which moves inversely to its price, fell 1/2 basis point to 0.08 percent, the long-term 30-year bond yields also slipped 1/2 basis point to 0.92 percent and the yield on the short-term 3-year note traded 1 basis point lower at -0.15 percent by 05:30 GMT.

Japan's exports rose in January at a slower pace than the previous month due to a decline in shipments to the U.S. and the Lunar New Year holidays and as concerns about growing trade protectionism cast doubts over the outlook.

Exports in January rose 1.3 percent from the same period a year ago, less than the median estimate for a 4.7 percent annual increase and slower than a 5.4 percent year-on-year increase in December. It's the second month in a row exports have grown, following 14 straight months of contraction.

Meanwhile, Japan’s Nikkei 225 rose 0.14 percent to 19,264 at 05:40GMT, while at 05:00GMT, the FxWirePro's Hourly Yen Strength Index remained slightly bullish at 89.99 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex