JGBs remain muted in flat trade; investors eye Q4 GDP

The Japanese government bonds remain muted Tuesday as investors refrain from any major trading activity during a session that witnessed data of less economic significance. Also, the fourth-quarter gross domestic product (GDP), due to be released today at 23:50GMT, is closely eyed by market participants as well.

The benchmark 10-year bond yield, which moves inversely to its price, rose 1/2 basis point to 0.08 percent, while the long-term 30-year bond yields fell nearly 1 basis point to 0.84 percent while the yield on the short-term 2-year note traded 1/2 basis point lower at -0.28 percent by 05:30 GMT.

Japan's economy is likely to have grown faster in the fourth quarter than initially reported, as companies ramped up investment in plant and manufacturing equipment, a latest Reuters poll showed. GDP growth for the October-December quarter is expected to be upwardly revised to an annualized 1.6 percent from a preliminary 1.0 percent, according to the median estimate of 20 economists.

Separate data from the finance ministry is expected to show Japan's current account surplus in January narrowed to 239.0 billion yen (USD2.09 billion) from JPY1.1 trillion in the previous month due to a slowdown in exports, Reuters reported.

Meanwhile, Japan’s Nikkei 225 fell 0.17 percent to 19,346.50 at 06:30GMT, while at 06:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at 47.10 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex