Euro-area bonds extended losses; Germany's two-year government bond yield rose 5bp to 2.59%.

China's Shanghai Composite Index closed down 51.0 points, or 1.26%, at 3,990.24 on Tuesday, July 7. Shenzhen Composite Index closed down 191.69 points, or 1.24%, at 15,225.11. CSI 300 Index closed down 49.74 points, or 1.03%, at 4,792.26. ChiNext Index closed down 36.95 points, or 0.94%, at 3,911.91. STAR 50 Index closed up 5.49 points, or 0.28%, at 2,001.59.

Germany’s pension commission has proposed tying statutory retirement age to projected life expectancy. Under the commission’s 2:1 rule, each one-year increase in projected life expectancy would, if approved, raise average working time by eight months and extend average retirement by four months. Separately, projected life expectancy in Germany hit new highs: males 79.1 years and females 83.6 years, up three months and two months respectively versus 2024.