Japan's Economy Expands at Sluggish Pace as Bond Yields Reach Three-Decade High

Japan's economy expanded at an annualized rate of 1.1% in the second quarter, falling short of economists' forecast of 2.0%, according to data from the Cabinet Office.

The 10-year Japanese government bond yield touched a three-decade high of 2.93% earlier in the day before easing slightly after the GDP figures were released.

The gap between weak growth and rising bond yields suggests that inflation and currency trends are driving Japan's markets, rather than economic growth itself.