WTI crude rose above $70/bbl, up 1.64% on the day.

PBOC's Pan said on July 7 at the Hong Kong Fixed Income and Currency Summit and Bond Connect Forum that the PBOC and HKMA previously established an RMB 800 bln standing swap and set an RMB 200 bln RMB business funding arrangement to supply Hong Kong banks with stable, lower‑cost medium‑to‑long‑term RMB liquidity. He said he will support the HKMA in expanding that funding arrangement to RMB 500 bln and extending its usable tenor to up to three years. Pan also said authorities will continue to refine cross‑border RMB settlement measures, deepen mainland–Hong Kong fast payment system interconnection, and maintain routine issuance of PBOC bills in Hong Kong.

Japan's 30-year government bond auction drew its strongest demand since 2019, with a bid-cover ratio of 4.55, versus 2.94 at the prior auction and a 12-month average of 3.41. Auction results lifted JGBs: 10‑year JGB futures rose and 30‑year bond prices climbed, sending the 30‑year yield down about 5bps to 4.025%. The strength came despite market concerns about fiscal policy and inflation, as high yields attracted buyers. SMBC Nikko Securities senior rates strategist Miki Den said: "Yields are at historically high levels; this morning's further rise boosted demand. The ultra-long end's steepening may pause temporarily, or mark a turn toward curve flattening."