The yield on U.S. 30-year Treasury bonds fell to its lowest level in 16 months on Monday with investors favoring the long-end as inflation fears ebbed in the wake of recent weak economic data.

The move came on the back of a fall in Japanese government bond yields after data showed Japan's economic growth slowed to a crawl in the second quarter.

The yield on the longest U.S. government debt maturity touched a session low of 3.802 percent, a level not seen since April 22.

The decline in 30-year bond yield narrowed its gap with the 10-year note yield to 117 basis points, the smallest margin in a week.

(Reporting by the London bonds team)

Japan