According to CoinMeta, data released on Monday showed that Japan's real GDP quarterly initial value for the second quarter was 0.3%, and the annualized quarterly initial value was 1.1%, with expectations of 0.5% and 2% respectively. The GDP growth rate fell short of expectations, complicating the Bank of Japan's further interest rate hike process. Private consumption remained flat in the second quarter, and a significant contraction in capital expenditure indicates that the private sector remains cautious about spending. This may lead the Bank of Japan to take a more cautious stance at its next meeting, despite PPI and CPI remaining high and continuing to pressure policymakers to take action. The yen may face new pressure due to weak economic growth prospects, especially if the market reduces the likelihood of a rate hike in September; at the same time, bond yields may decline as short-term tightening expectations weaken. Although the contribution of external demand partially offset this impact, it is not enough on its own to change the overall modest economic trend.