The EU is open to a 10% universal tariff deal with the US while seeking lower rates on key sectors to avoid a sharp tariff hike on July 9. Trump defends tariffs as necessary for US manufacturing and tax funding.

US 10-year yields fell to 4.22%, a two-month low, amid fiscal and trade concerns. Markets await Thursday’s jobs report while watching the Senate’s push for Trump’s tax-cut bill, expected to add $3.3 trillion to debt. Expectations for deeper Fed cuts continue to grow.

Japan’s 10-year yield held near 1.43% as trade tensions resurfaced. Trump reaffirmed auto tariffs, criticizing Japan’s trade surplus. Japan’s Tankan survey showed improved sentiment among large manufacturers despite external pressures.