Some onshore bonds of Zhuhai Huafa Group rallied, with 24 Zhuhua 01 up over 19% and 25 Zhuhua Y1 up over 14%.

U.S. Secretary of State Rubio said economic pressure on Iran is proving effective and there is no need for large-scale military operations.

Signs of persistent U.S. inflation pushed Treasury prices down and yields up; 2- to 5-year yields rose more than 10 bps after Tuesday's inflation release. Traders stepped up bets on further Fed tightening, pricing at least two rate hikes by mid-2027 and a small probability of a 50-bp move in December. Fed governor Waller, speaking in London, said he would lean toward a 50-bp hike if inflation accelerates. Markets have fully priced a 25-bp Fed hike for December.