German official: Opportunities for a European-Russia dialogue on Ukraine are slowly opening, but this will take months.

The PBOC released May liquidity operations showing net open-market government bond injections of 50 bln yuan. Dongfang Jincheng chief macro analyst Wang Qing said ample market liquidity and no need for large-scale long-term injections explain the low net operations, reflecting the central bank’s flexible use of open-market tools to guide market rates around the policy rate. Market participants note the PBOC is deploying a wider range of liquidity tools with greater flexibility, maintaining policy direction while switching between a 'withdraw-first-then-release' rhythm and 'peak-shaving/valley-filling' adjustments. Wang expects China’s 10-year government bond yield to trend lower amid evolving geopolitics, slower international oil price gains, cooling domestic inflation expectations and volatile April macro data — a factor behind May’s small net injection. He adds that if the 10-year yield falls below 1.7%, further cuts to net bond-trading injections or a pause in open-market government bond trading are possible.

Omdia said U.S. May light-vehicle sales totaled 1.50 mln units, with a seasonally adjusted annual rate (SAAR) of 16.08 mln.