Japan's government pushed back against market views that its economic blueprint is aimed at pressuring the Bank of Japan to keep rates low. Economy Minister Minoru Kiuchi said monetary policy remains under the BOJ's authority and denied that changes to fiscal targets signal a retreat from budget discipline, after Japanese government bond yields rose to multi-decade highs.

Britain's bond market could limit Andy Burnham's room for fiscal maneuver if he becomes prime minister as expected, with high gilt yields and debt-interest costs keeping investors focused on spending discipline. Although lower oil prices after the US-Iran deal have eased borrowing pressure, markets remain sensitive to the UK's fiscal rules, energy exposure and heavy bond issuance.

South Korea's first full day of round-the-clock won trading passed with below-average volume and limited price movement. Dollar-won spot turnover totaled about $15.1 billion, 6% below the 30-day average, as officials monitored the expanded session for glitches while activity remained concentrated in Seoul hours.

Traders have built nearly $40 billion of bullish dollar positions, the highest level since 2015, as expectations for Fed rate hikes and resilient US growth support the currency. The dollar gained 2% in June after Kevin Warsh's price-stability pledge reinforced higher-for-longer rate expectations, though weaker jobs data has started to test the rally.

Investors are reassessing Chinese assets as bonds, the yuan and select equities move out of sync with global markets dominated by AI trades, US rates and geopolitical shocks. The shift has brought renewed foreign interest into Chinese bonds and stocks, though skeptics still point to weak consumer demand, property stress and limited earnings growth.

China will raise the annual quota for mainland investors buying offshore bonds through Hong Kong's Bond Connect scheme to 800 billion yuan from 500 billion yuan. The move, alongside broader access to US dollar and Macau-issued bonds, is aimed at boosting renminbi internationalization and giving mainland institutions more higher-yielding offshore investment options.

A review commissioned by the UK Financial Conduct Authority urged the regulator to consider whether large language models need oversight as consumers increasingly use chatbots for financial guidance. The report also warned that financial firms' reliance on a small group of AI, cloud and technology providers could create correlated behavior and system-wide operational risks.

The US CFTC has decided to exempt post-trade risk reduction services from clearing obligations, a move some market participants say could ease capital and operational burdens. Clearinghouses are concerned the exemption could encourage firms to shift derivatives trades out of central clearing and into bilateral structures.

The US Securities and Exchange Commission is considering revising its oversight of exchange-traded funds in response to a surge in ETF filings, particularly for prediction-market ETFs. The ETF market has grown to $16 trillion, prompting the SEC to scrutinize its regulatory framework to ensure it remains effective.

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