US 10-year Treasury yields held near 4.26% as markets priced in deeper Fed cuts, now expecting 64 bps in 2025, up from 46 bps earlier. Speculation grew as reports indicated Trump may announce a Fed Chair replacement by September or October, potentially shifting policy in a dovish direction. Traders await the PCE report for further guidance.

In Japan, 10-year yields rose above 1.43% as Tokyo’s core inflation eased but stayed above the BOJ’s 2% target. Governor Ueda signaled possible further hikes if wage growth supports demand, though the BOJ remains cautious and plans to gradually reduce bond purchases while maintaining accommodative policy amid global uncertainties.

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