Japanese government bond yields decline, expectations for a rate hike by the Bank of Japan cool off.

With the recent cooling of expectations for a rate hike by the Bank of Japan, Japanese government bond yields have fallen. The weaker-than-expected GDP data released on Monday reduced the prospects for further rate hikes by the Bank of Japan. Investors are watching Prime Minister Naoto Kan's policy measures, especially those aimed at reducing the cost of living, such as temporarily lowering the consumption tax on food. The 5-year Japanese government bond yield fell by 2 basis points to 1.650%. The 2-year Japanese government bond yield fell by 1.5 basis points to 1.25%.