JGBs gain ahead of next week’s April trade balance data

The Japanese government bonds gained Friday as investors await the country’s trade balance data for the month of April, scheduled to be released on May 22.

The benchmark 10-year bond yield, which moves inversely to its price, fell nearly 1 basis point to 0.04 percent, while the long-term 30-year bond yields slumped a little over 1 basis point to 0.80 percent and the yield on the short-term 2-year note also traded nearly 1 basis point lower at -0.16 percent by 05:40 GMT.

Japan’s economy advanced for a fifth straight quarter, the longest expansion in a decade, supported by continued strength in exports. The country’s first quarter GDP rose a more than expected 0.5 percent on quarter and 2.2 percent at an annual pace.

A poll ahead of the data by Reuters showed analysts expected a 0.4 percent quarterly gain and a 1.7 percent annual pace. The data showed the fifth straight quarter of growth and the fastest pace since the first quarter of 2016.

Meanwhile, Japan’s Nikkei 225 traded 0.35 percent higher at 19,618.50, while at 05:00GMT, the FxWirePro's Hourly Yen Strength Index remained neutral at 46.82 (a reading above +75 indicates a bullish trend, while that below -75 a bearish trend). For more details, visit http://www.fxwirepro.com/currencyindex