JGBs remain flat even as exports hit 4-month high in May; eyes on 30-year auction, April policy meeting minutes

The Japanese government bonds remained flat during late Asian session Monday even as exports hit a 4-month high during the month of May, with investors now eyeing the 30-year auction and the Bank of Japan’s (BoJ) April monetary policy meeting minutes, scheduled for June 19 and 20 respectively.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.03 percent, the yield on the long-term 30-year note flattened at 0.71 percent and the yield on short-term 2-year too traded flat at -0.13 percent by 05:20GMT.

Japan’s exports rose 8.1 percent in May from the same period a year ago, more than the median estimate for a 7.5 percent annual increase expected by economists in a Reuters poll. In April, exports grew an annual 7.8 percent.

The country’s exports to the United States rose 5.8 percent year-on-year in May, faster than a 4.3 percent year-on-year in April, due to higher shipments of car parts. Imports from the United States rose 19.9 percent year-on-year as imports of U.S. aircraft and coal grew.

Meanwhile, the Nikkei 225 index close 0.73 percent lower at 22,685.50 by 05:30 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at 53.09 (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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