US core PCE price index YoY for May rose to 3.4%, matching expectations and the highest reading since October 2023.

Prime Minister Takaichi's proposed 14-year investment programme — ¥370 trillion (~$2.3tn) through March 2041 — has prompted bond strategists to warn of renewed pressure on the Japanese government bond market and questions over financing and the plan's ability to deliver growth. The government has not specified incremental fiscal outlays; several brokers say expanded borrowing would likely lift long-term yields. Masayuki Koguchi, executive fund manager at Mitsubishi UFJ Asset Management, said investors will focus on financing and that the plan will most likely be funded via government bond issuance or other measures, a result that could make JGBs difficult to buy. Daiwa Securities chief strategist Shun Otani said the plan will have a negative effect on JGBs, noting the government's assumption of roughly ¥10 trillion a year in fiscal spending and the issuance of transitional bonds, and added market uncertainty over whether the investments will produce the expected growth will push up risk premia.

Fed Governor Cook did not comment on monetary policy or the economic outlook in remarks at the opening of a small-business symposium.