France-Germany 10-year government bond yield spread narrowed 7 bps to 134 bps.

Bundesbank President Nagel said on Monday that rising government debt levels strengthen the case for central banks to increase gold holdings. He noted recent rises in global government bond yields have made bonds relatively more attractive, but mounting debt heightens credit-risk concerns for those assets and geopolitical risk could influence reserve management. Germany holds the world’s second-largest gold stock but its holdings have been largely unchanged while other central banks have stepped up purchases, a trend accelerated by the Russia-Ukraine conflict and broad US financial sanctions. Growing market concern about rising US debt has increased expectations that central banks may reduce dollar exposure and expand gold reserves.

Hang Seng index futures opened down 0.15% at 23,855, trading 125 points below the cash index.