ECB Governing Council member Nagel said it is still too early to judge whether to raise interest rates.

Investors' long-running yen carry trades—borrowing cheap yen to fund higher-yield assets—have funneled Asia-origin flows into global risk assets, including US stocks and commodities. The recent yen decline is market-relevant as markets approach the two-year anniversary in August of Japan's large August 2024 yen intervention, which triggered Japan's biggest one-day equity drop since 1987, amplified US volatility and saw the S&P 500 fall 6.1% over three days. ING global markets head Chris Turner says, given thin trading ahead of the July 4 holiday, Japan could buy yen as soon as Friday or wait until the July 20 Marine Day holiday to act.

2-year bond futures (TS) most-active contract down 0.02%; 5-year bond futures (TF) most-active contract down 0.07%; 10-year bond futures (T) most-active contract down 0.09%; 30-year bond futures (TL) most-active contract down 0.49%.