JGBs tad higher ahead of July retail sales, industrial production data

Japanese government bonds traded tad higher Monday as investors wait to watch the country’s retail sales and industrial production for the month of July, scheduled to be released on August 29 and 30 by 23:50GMT respectively.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, slipped 1/2 basis point to 0.096 percent, the yield on the long-term 30-year note fell 1 basis point to 0.832 percent and the yield on short-term 2-year remained flat at -0.114 percent by 06:00GMT.

Fed Chair Jerome Powell at the annual conference in Jackson Hole, Wyoming defended his gradualist approach and in essence, he hardened expectations for a September hike. Powell also laid out a doctrine of basing monetary policy as much on how the economy performs in reality than just on the prescriptions of academic models as he constantly made references to the term “shifting stars” in his speech.

Japan's core consumer prices rose 0.8 percent in July from a year earlier, government data showed on Friday. The core consumer price index, which includes oil products but excludes fresh food prices, compared with economists' median estimate for a 0.9 percent annual gain. Stripping away the effect of fresh food and energy, consumer prices rose 0.3 percent in July from a year ago, Reuters reported.

Meanwhile, the Nikkei 225 index rose 1 percent to 22,801.50 by 06:05GMT, while at 06:00GMT, the FxWirePro's Hourly JPY Strength Index remained slightky bearish at -54.87. For more details, visit http://www.fxwirepro.com/currencyindex