The Japanese government bonds traded narrowly mixed Friday, succumbing to thin trading activity during a relatively quiet session that witnessed data of little significance. Also, investors wait to watch second-quarter gross domestic product (GDP).
The benchmark 10-year bond yield, which moves inversely to its price, fell 1/2 basis point to -0.102 percent, the super-long 30-year JGB yield also dipped nearly 3 basis points to 0.363 percent, the 5-year JGB yield bounced 1 basis point to -0.183 percent and the short-term 2-year JGB yield climbed 1/2 basis point to -0.195 percent by 07:30 GMT.
According to Reuters, the results of today's JGB buying operations, which the BoJ published around noon, were mixed in terms of the bid-to-cover ratio and the accepted yields. Many money managers and dealers are still off on summer holidays. The BOJ on Friday offered to buy 430 billion yen ($4.21 billion) of 5-year to 10-year JGBs as part its regular debt-buying scheme.
The second quarter GDP will be announced on 15 August and the real GDP is expected to grow 0.3 percent q/q in the second quarter, continuing the upward trend seen in the first quarter of 2016 (0.5 percent q/q). On an annualised basis, it is likely to grow 1.1 percent q/q in line with the previous forecast of 1.0 percent q/q annualised.
Meanwhile, the benchmark Nikkei 225 closed up +1.10 percent at 16,919.92 and the broader Topix index closed 0.64 percent higher to 1,323.22 points.


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