JGB yield curve steepens as weak Japan GDP tempers BOJ hike expectations

Japan's government bond yield curve steepened slightly in early Tokyo trade as Friday's steepening in the U.S. Treasury market fed through to JGBs, while softer-than-expected first preliminary second-quarter real GDP data reduced the perceived likelihood of a BOJ rate hike next month. The weaker growth reading was seen limiting gains in shorter-dated yields even as long-dated bonds came under pressure from lingering concerns over Japan's fiscal spending. The two-year JGB yield rose 1.5 basis points to 1.665%, while the 30-year yield climbed 2 basis points to 4.030%.

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