Japanese 10-year bond yield suffers after May unemployment rate drops to fresh 25-year low, industrial production tops estimates

The Japanese 10-year government bond yield suffered during Asian session Friday after the country’s unemployment rate for the month of May dropped to fresh 25-year low and the industrial production for the similar period also topped market expectations, thus weighing on debt prices.

The yield on Japan’s benchmark 10-year bond, which moves inversely to its price, rose 1/2 basis point to 0.03 percent, the yield on the long-term 30-year hovered around 0.71 percent and the yield on short-term 1-year traded tad higher at -0.12 percent by 05:15GMT.

Japan's unemployment rate in May improved from a month earlier, the Ministry of Internal Affairs and Communications said in a report Friday. According to the ministry, the unemployment rate in the recording month stood at 2.2 percent in May, compared to 2.5 percent a month earlier.

Separately, the Ministry of Health, Labor and Welfare said that job availability stood at 1.60 in May, rising from 1.59 in April. The figure translates to there being 160 job openings for every 100 workers.

Further, the country’s industrial production for the similar period declined 0.2 percent from the previous month, with the seasonally adjusted index of output at factories and mines standing at 104.4 against the base of 100 for 2010. The figure for May follows a 0.5 percent increase logged in May.

In its preliminary report, the ministry maintained its basic assessment that industrial production in Japan is "picking up slowly".

Meanwhile, the Nikkei 225 index traded 0.10 percent higher at 22,288.00 at 05:20, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained slightly bearish at -110.40 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex