The announcement followed a meeting in Paris between Vietnam’s Trade Minister Nguyen Hong Dien and U.S. Trade Representative Jamieson Greer, where both sides agreed to fast-track technical discussions ahead of negotiations in early June. Vietnam acknowledged U.S. demands as tough, especially regarding reduced reliance on Chinese imports, but did not disclose its own proposals. The Trump administration has set strict deadlines, urging countries to submit their best offers. Vietnam reaffirmed its commitment to resolving outstanding issues.
The Bank of Japan (BoJ) is considering slowing its bond purchase tapering next fiscal year to avoid market disruptions, according to Reuters. Sharp swings in long-term yields, driven by concerns over Japan’s public finances, have triggered internal debate. While some officials support continuing the current pace to reduce BoJ’s market footprint, others prefer a more gradual approach. A decision is expected at the June 16–17 meeting, where the board will finalize plans for FY 2026. Market participants have called for halving the taper to 200 billion yen per quarter from the current 400 billion. Despite BoJ’s large bond holdings, recent volatility has raised concerns about moving too quickly. The priority remains stabilizing the yield curve.
The U.S. 10-year Treasury yield held near 4.37% on Thursday, extending losses after a 10 basis-point drop the previous session. Markets await jobless claims and Friday’s nonfarm payroll report. Soft data released Wednesday added to economic concerns: the ADP report showed only 37,000 private-sector jobs in May, the lowest in over two years, and the ISM services PMI indicated a contraction for the first time in nearly a year. President Trump continued to call for Fed rate cuts, though policymakers remain cautious amid mixed signals and uncertainty.
China’s 10-year bond yield dropped to 1.70% as investors moved to safer assets following weak PMI data and renewed U.S.-China trade tensions. A private survey showed China’s composite PMI hit a two-and-a-half-year low, largely due to weak manufacturing despite resilience in services.
Japan’s 10-year bond yield eased to around 1.48% amid growing concern over the economic outlook. Real wages fell for a fourth straight month in April, with inflation continuing to outpace earnings and eroding household purchasing power. The weak wage data, combined with global trade risks, complicates the BoJ’s policy normalization efforts.
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