JGBs jump after Q2 final GDP data fails to cheer investors

The Japanese government bonds jumped on the last trading day of the week after the country’s final reading of the gross domestic product (GDP) for the second quarter of this year disappointed markets, missing both consensus estimates and down from the preliminary reading.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, plunged 1-1/2 basis points to 0.001 percent, the yield on long-term 30-year slumped 2 basis points to 0.81 percent and the yield on short-term 2-year traded 1/2 basis points lower at -0.16 percent by 04:55 GMT.

Japan’s economy expanded at an annualised rate of 2.5 percent in the April-June quarter, revised down from a preliminary estimate of 4.0 percent growth, Cabinet Office data showed on Friday. The revised gross domestic product figure compared with the median forecast for 2.9 percent growth in a Reuters poll of economists.

On a quarter-on-quarter basis, GDP rose 0.6 percent in real, price-adjusted terms, against a preliminary reading of a 1.0 percent increase and the median estimate of a 0.7 percent expansion.

Meanwhile, Japan’s Nikkei 225 fell 0.38 percent to 19,322.50 by 04:55GMT, while at 04:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at -24.59 (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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