Hong Kong Chief Executive John Lee said Hong Kong will offer tax incentives for gold trading and settlement.

Conflict Situation 1. Lebanese source: The date for Israel's withdrawal from the test zone has not yet been determined. 2. Israeli official: We do not plan to establish permanent (military) outposts in the southern Lebanese security zone. 3. Trump: I could destroy all of Iran's power plants "in less than an afternoon." 4. US President Trump: (Regarding Iran) Either a deal or the mission is accomplished. I prefer a deal. 5. Iranian Parliament Speaker Ghalibaf: Those responsible for attacks on Iran and the killing of Iranian people, especially those targeting the Supreme Leader of the Islamic Revolution, will ultimately be held accountable. 6. Secretary of Iran's Supreme National Security Council: (Responding to Trump) Please respect the Iranian people, otherwise we will respond in another language. US-Iran Negotiations 1. Israeli Ambassador to the US: The next round of talks between Israel and Lebanon will be held in Rome, Italy, from July 14th to 15th. 2. Israeli official: Even if the US and Iran reach an agreement, Israel will retain the option of launching a military strike against Iran. Strait of Hormuz 1. At least eight Japanese ships are sailing out of the Strait of Hormuz in formation. Other News 1. Israeli Prime Minister Netanyahu: Trump and I agree on many issues. My relationship with Trump is very good. A date for a visit to the United States has not yet been set. 2. Israel Defense Forces Spokesperson: IDF killed Hamas military training commander. 3. According to Axios: Netanyahu asked Trump to restrain Erdogan ahead of the NATO summit. 4. Lebanese President Aoun: I will not meet with Netanyahu. 5. Lebanese President Aoun: Claims about forming a force to implement the “pilot area agreement” are untrue. 6. French Presidential Palace: Macron and Syrian President Shara will co-chair a meeting on Syrian economic reconstruction tomorrow.

Masahiro Ichikawa, strategist at Sumitomo Mitsui DS Asset Management, said 10-year JGB yield could reach 3% by year-end if Japan’s economy remains on a solid growth path. He said a large-scale government investment plan that stimulates private-sector capex would leave further upside for Japanese equities. He added Prime Minister Sanae Takaichi has signaled intent to preserve market confidence, lowering the risk of fiscal indiscipline. 10-year JGB yield was up 6bps at 2.830%.