JGBs tad lower ahead of Q4 GDP release, BoJ’s monetary policy decision

The Japanese government bonds traded tad lower Wednesday as investors wait to see a slight upward push in the country’s fourth-quarter gross domestic product (GDP), scheduled to be released later today. Also, the Bank of Japan’s (BoJ) two-day monetary policy meeting, due to be concluded on March 9 will add further direction to the debt market.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, hovered around 0.05 percent, the yield on the long-term 30-year note flattened at 0.75 percent and the yield on short-term 2-year traded 1/2 basis point higher at -0.15 percent by 04:40 GMT.

According to the latest Reuters poll, a majority of the analysts see the Japanese economy expanding at a faster growth rate in the final quarter of 2017 versus previously estimated, boosted by bullish capital expenditure.

The poll also found the Bank of Japan is expected to keep its short-term interest rate at minus 0.1 percent and the 10-year government bond yield target at around zero percent when policymakers meet on March 8-9.

Meanwhile, the Nikkei 225 index traded 0.57 percent lower at 21,296.50 by 04:45 GMT, while at 04:00GMT, the FxWirePro's Hourly JPY Strength Index remained neutral at -27.78 (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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