Japan bond yields rise as GDP growth disappoints
Japan's 10-year government bond yield climbed to around 2.93%, a three-decade high, while Cabinet Office data showed second-quarter GDP expanded at an annualised 1.1%, well below forecasts and down from a revised 1.9% in Q1. Quarter-on-quarter growth was 0.3%, with flat private consumption and a 1.2% drop in capital expenditure, while net exports added 0.5 percentage points helped by a weak yen. The GDP deflator rose 2.6% year on year, and traders are increasingly betting the Bank of Japan may raise its policy rate in September, a development that could unsettle global carry trades and markets.
Ten-year JGB yield reached about 2.93%, the highest since 1996.
Context
Bond yields rose before the government released slower GDP data. The yen weakened…
The full analysis
19 dimensions on this story — world impact, market read, and what happens next.
- Full ContextLocked
- Affected SectorsLocked
- Stock ImpactLocked
- Economic IndicatorRising domestic inflation pressure…Locked
- Investor RelevanceLocked
- Professional RelevanceLocked
- Watch PointsBank of Japan September meeting: policy…Locked
- Probability of ChangeLocked
- Debate PointsWhether the Bank of Japan should…Locked
- Historical ParallelAugust 2024 market shock when a BoJ…Locked
- Prerequisite KnowledgeLocked
- Follow-up QuestionsWill the Bank of Japan raise its policy…Locked
- Pros & ConsExporters: benefit because net exports…Locked
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