JGBs remain tad lower ahead of April industrial production, BoJ’s monetary policy decision

Japanese government bonds remained tad lower during late Asian session Tuesday as investors await the country’s industrial production for the month of April and the Bank of Japan’s (BoJ) monetary policy decision, scheduled to be unveiled by later this week.

The yield on the benchmark 10-year JGB note, which moves inversely to its price, traded 1/2 basis point higher at 0.04 percent, the yield on the long-term 30-year note rose 1 basis point higher at 0.73 percent and the yield on short-term 2-year hovered around -0.12 percent by 05:00 GMT.

The BoJ’s policymakers will debate this week whether structural factors may be behind recent disappointingly slow inflation, which could force them to cut the central bank's price forecasts at a quarterly review in July.

The central bank is not expected to changes policy settings. But it could look more closely at the role technology and innovation play in keeping price growth low after surprisingly weak inflation dashed hopes that record profits could nudge firms into hiking prices at the start of the current fiscal year in April, the Business Standard reported.

Meanwhile, the Nikkei 225 index traded 0.39 percent higher at 22,894.00 by 05:05 GMT, while at 05:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -160.36 (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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