Japan 20-year government bond yield rose 4.0 bps to 3.850%, the highest level since July 1996.

US Dollar: 1. The US trade deficit in May was -$77.6 billion, the largest deficit since March 2025. 2. UN: The US will remain the top destination for foreign direct investment in 2025, despite a decline in investment inflows. 3. Fed's Williams: The US economy is expected to maintain a stable growth trend. Monetary policy is positioned to achieve the Fed's goals, and its direction depends on data and risks. 4. The Fed plans to revise anti-money laundering regulations for banks, requiring them to focus more resources on high-risk clients and business activities. The proposal will be open for public comment for 60 days. Euro: 1. French Finance Ministry: Lowered its 2026 economic growth forecast from 0.9% to 0.7%. 2. ECB Governing Council member Panetta: The latest energy shock should not be viewed as a temporary phenomenon. The outlook remains fragile. In the current context, the soundness of policy choices is crucial. Pound Sterling: 1. The Bank of England released its Financial Stability Report; the pound and UK gilt yields remained high. 2. Bank of England Governor Bailey: The Monetary Policy Committee had a particularly in-depth and complex discussion on leverage reform. The UK banking system does not need more capital. Japanese Yen: 1. Japanese media: The Japanese government may adjust the monetary policy-related wording in its annual policy guideline. 2. Bank of Japan Policy Board member Toshiro Asada: A rate hike will only be supported if demand drives inflation. 3. Japan's top foreign exchange official, Jun Mimura: We have been in close contact with South Korean foreign exchange authorities regarding foreign exchange fluctuations recently. The financial markets of South Korea and Japan sometimes exhibit similar trends. Korean Won: 1. South Korean think tank: The chip boom offsets the weakness in manufacturing; the South Korean economy remains on a recovery track. 2. South Korean Ministry of Finance: Will strengthen the foreign exchange monitoring system to cope with fluctuations during overnight trading. 3. Sources say there was a sell-off of US dollars in the USD/KRW forward market related to the SK Hynix ADR listing. Other: 1. The Reserve Bank of New Zealand raised interest rates by 25 basis points as expected, suggesting a possible further tightening of policy. 2. Reserve Bank of New Zealand Governor Brehman: Inflation may have peaked. Interest rates are gradually adjusting towards a neutral level. 3. People's Bank of China: China's foreign exchange reserves stood at US$3,416.262 billion at the end of June, a decrease of US$25.976 billion month-on-month. 4. Bank of Thailand meeting minutes: Inflation is expected to exceed the target range for the remainder of 2026, mainly due to the transmission of energy and production costs. 5. Reserve Bank of Australia Assistant Governor Hunt: The recent oil price shock has not yet led to a slowdown in the Australian economy. The Reserve Bank will continue to take necessary actions to ensure that inflation returns to the target level.

All three major U.S. stock indexes fell by more than 1% during the day.