An index tracking emerging-market currencies rose as much as 0.2% to 1,906.98 on Monday, hitting a record high, while an EM equity index gained about 0.6%. Softer US economic data trimmed expectations for further Fed tightening and weakened the dollar, supporting EM assets. BNY Mellon senior Asia strategist Wee Khoon Chong said EM FX is being bolstered by dollar softness and a renewed risk-on mood, with strong foreign inflows into emerging markets—particularly Asia. SocGen emerging-Asia strategi

Japanese 10‑year government bond yields rose 5.5bps to 2.93%, theirhighest since 1996; 30‑year yields climbed 5bps to 4.06%, nearing May record highs. The move reflects fiscal funding uncertainty after the government has not clarified how it will finance a two‑year cut to the food consumption tax, and reports that Prime Minister Takaichi's administration supports near‑term Bank of Japan rate increases, with a next hike possible in September or October. Ryutaro Kimura, senior bond strategist at BNP Paribas Asset Management, said improving liquidity as investors return from summer holidays has prompted markets to price faster Bank of Japan tightening, and warned that unless Takaichi abandons expansionary fiscal policy, yields may fall only gradually.

Axios, citing three people, reports mid‑May US envoys seeking an agreement to end hostilities could not verify whether Iranian negotiators represented the Islamic Revolutionary Guard Corps (IRGC). The Trump administration therefore bypassed Iran’s negotiators and opened a secret channel to IRGC leaders through Iraqi Kurdistan president Nechirvan Barzani, who reportedly has the trust of both Washington and IRGC leadership. A memorandum of understanding was reportedly reached but quickly collapsed, underscoring US difficulty in identifying who holds decision authority inside Iran.