JGBs gain after January industrial production fails to cheer market participants

Japanese government bonds gained Friday after the country’s industrial production for the month of January, disappointed market participants, coming in lower than anticipations, thus increasing the demand for safe-haven assets.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, slipped nearly 1 basis point to 0.03 percent, the yield on the long-term 30-year note remained flat at 0.76 percent and the yield on short-term 2-year traded tad lower at -0.12 percent by 04:40 GMT.

Japan’s industrial production for the month of January came in lower than market expectations at -6.8 percent m/m, compared to estimates of and from the preliminary number of -6.6 percent m/m. however, on a y/y basis, it registered 2.5 percent, vs preliminary reading of 2.7 percent.

Meanwhile, the Nikkei 225 index traded 0.73 percent lower at 21,644.50 by 04:55 GMT, while at 04:00GMT, the FxWirePro's Hourly JPY Strength Index remained highly bullish at 126.24 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex

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