JGBs trade flat in muted session, slightly lower equities limit rise in yields

The Japanese government bonds remained flat in subdued trading session Tuesday that witnessed data of least economic significance, while slightly lower equities limited the fall in yields. Also, investors are curiously eyeing the super-long 3-year bond auction, scheduled to be held on February 9.

The benchmark 10-year bond yield, which moves inversely to its price, hovered around 0.09 percent, while the long-term 30-year bond yields also remained flat at 0.90 percent and the yield on the short-term 2-year note slid nearly 1 basis point to -0.21 percent by 06:00 GMT.

Also, the central bank revised up its estimate of Japan’s real gross domestic product (GDP) to +1.5 percent for FY2017/18, compared to +1.3 percent projected in November, for FY2018/19 at +1.1 percent, against the +0.9 percent projected in November.

Meanwhile, Japan’s Nikkei 225 closed 0.38 percent lower at 18,905 while at 6:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at 92.91 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex