Japan’s 10-year yield rose above 1.42% after core inflation hit 3.7% in May, the highest since January 2023. The BOJ held rates at 0.5% but may extend tightening as firms pass wage hikes to prices. Governor Ueda reaffirmed a data-driven approach and confirmed plans for gradual balance sheet reduction in 2026.

China’s 10-year yield stayed near 1.64% after the PBOC left rates unchanged, keeping the one-year LPR at 3.0% and five-year at 3.5%. The move followed recent easing steps to counter tariff risks. China condemned Israel’s strike on Iran but limited support to trade ties.

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