The U.S. delegation includes Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer. Chinese Vice Premier He Lifeng leads the discussions on China’s side. The talks build on a recent Trump-Xi phone call, during which Xi agreed to resume rare earth shipments. Despite this, manufacturers remain wary amid ongoing supply chain issues.

The U.S. 10-year Treasury yield held near 4.48% on Tuesday as markets awaited more economic data and closely followed the London talks. Monday’s meetings addressed rare earth exports and potential easing of restrictions, with additional sessions scheduled for today. Hopes for diplomatic progress are keeping yields steady despite lingering concerns.

Japan’s 10-year bond yield climbed to around 1.48% on Tuesday, rebounding from recent lows after BOJ Governor Kazuo Ueda signaled a more hawkish policy stance. In a parliamentary speech, he said rates could rise further if inflation approaches 2% consistently, supporting expectations of gradual tightening. Still, weak domestic demand and U.S. tariffs continue to cloud the outlook. The BOJ recently cut its growth forecasts due to external pressures. Meanwhile, revised data showed Japan's economy was flat in Q1 2025, improving from a previous estimate of a 0.2% contraction.

Please download our detailed analysis file for further information.