Market sources: US Treasury Secretary Bessent told Bank of Japan Governor Ueda that clear formulation and communication of monetary policy are essential to stabilise inflation expectations.

BCA Research analyst Felix Vezina-Pouliot said government bond yield volatility is likely to become a key driver of risk asset prices. Sovereign yields have risen to multi-year highs as elevated oil prices stoke inf concerns. "For equities, the absolute level of yields matters less than the speed of change; implied interest-rate volatility is a more useful gauge of equity risk," he said. Fed chair KEVIN WARSH signaled last week readiness to act to curb inf, which should help keep yield volatility relatively contained.

Ukraine's prime minister said the government will audit the Defense Ministry's procurement requests.