JGBs trade narrowly mixed in silent trading session, investors eye Q4 GDP data next week

The Japanese government bonds traded narrowly mixed Friday as investors remain sidelined in any major trading activity and as market participants await the release of fourth-quarter gross domestic product (GDP), due on February 13.

The benchmark 10-year bond yield, which moves inversely to its price, rose nearly 1 basis point to 0.09 percent, while the long-term 30-year bond yields skid nearly 1/2 basis point to 0.87 percent and the yield on the short-term 3-year note rose 1/2 basis point to -0.14 percent by 06:40 GMT.

The central bank on Friday purchased JGBs having residual maturity of 1-3 years worth JPY4.001 billion, maturity of 3-5 years worth JPY4.205 billion, maturity of 10-25 years worth JPY2.001 billion, of maturity over 25 years worth JPY1.206 billion and T-bills worth JPY15.002 billion.

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 2.59 percent higher at 19,398.00, while at 6:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at 49.69 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex