Japan 10-Year Yield Rises on Strong GDP Data

Japan’s 10-year government bond yield rose above 0.83% as investors reacted to stronger-than-expected GDP growth numbers.

Data showed that Japan’s economy expanded 0.8% QoQ in the second quarter, reversing from a 0.6% contraction in the first quarter and beating expectations of 0.5%.

On an annual basis, the economy grew 3.1% in Q2, shifting from a 2.3% decline in Q1 and topping forecasts of 2.1%.The latest figures supported the Bank of Japan’s decision to raise interest rates last month.

Meanwhile, a former BOJ official suggested that the central bank will not be able to hike rates again this year due to financial market turmoil.

Elsewhere, Prime Minister Fumio Kishida will reportedly not seek reelection as party leader in September.