TOKYO, July 1 (Reuters) - Japanese government bond yields fell on Friday, tracking U.S. Treasury peers, which declined on concerns the Federal Reserve would dampen growth more than needed to curb soaring inflation.
The 10-year JGB yield fell 0.5 basis point to 0.220% and the 20-year JGB yield dropped 1.5 basis points to 0.875%.
The 30-year JGB yield slipped 0.5 basis point to 1.235%.
In a sign of a slowing U.S. economy, consumer spending rose a less-than-expected 0.2% last month, the Commerce Department said. It also lowered data for April to show outlays increased 0.6% instead of 0.9% as previously reported.
Losses in Japanese equities also boosted demand for safe-haven debt. Japan's benchmark Nikkei fell below the psychological level of 26,000 mark for the first time in almost two weeks.
The two-year JGB yield fell 0.5 basis point to -0.070% and the five-year yield lost 1 basis point to 0.010%.
The 40-year JGB yield was flat at 1.335%.
Benchmark 10-year JGB futures rose 0.32 point to 148.93, with a trading volume of 13,122 lots. (Reporting by Tokyo markets team; Editing by Sherry Jacob-Phillips)
