Japan 2-year bond yield rose 1.5 bps to 1.445%.

CITIGROUP analysts say Mercedes‑Benz shares showed little reaction to a c.8% drop in global auto sales in Q2, highlighting very low market expectations. The bank says investors are likely to wait for clear evidence of stronger EBIT margins or a resumption of buybacks before re‑entering. Mercedes sold 2,000 fewer cars in Q2 versus Q1, which points to a renewed margin squeeze after the 4.1% reported in Q1. Van volumes rose 1% to 94,000 units; that division should deliver another solid quarter with margins near 10%. CITIGROUP rates the stock neutral with a PT of €51.

The Industry Association said two new policy measures will continue to be implemented in H2, supporting fresh incremental demand in the China auto aftermarket. New-product supply is expanding and market prices are relatively stable, underpinning further improvement in sector operating conditions. Risks include a volatile external environment, rising uncertainty and persistently weak domestic demand, leaving the industry under significant pressure. The association called for stabilizing policy expectations, strengthening regulatory guidance, closely monitoring international developments, managing risks and steadily expanding overseas markets.