The US lifted license requirements for chip software sales to China, signaling progress in trade talks as China resumes rare earth and tech exchanges.

US 10-year yields fell to 4.26% as markets await the June jobs report, which could support a July Fed rate cut. Uncertainty remains with Trump’s $3.3 trillion tax bill facing House resistance.

Japan’s 10-year yield rose above 1.45% on optimism over US trade talks, despite Trump’s threat of 35% tariffs on Japanese imports due to low purchases of US goods.

China’s 10-year yield held at 1.64% as PMI data showed manufacturing improving while services slowed. Markets now await inflation and trade data, with attention on the upcoming Politburo meeting for possible stimulus amid US tariff risks.

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