NYT reports the US is pressuring Meta Platforms (META.O) to conduct an AI safety review amid rising security concerns.

Japanese government bond yields ticked up on Tuesday following moves in overnight US Treasuries, stoking market speculation the Bank of Japan could speed up rate hikes to counter yen weakness. Japan’s finance minister Katayama held an online call with US Treasury Secretary Bessent on Monday amid volatile FX; NHK and Kyodo reported the talks likely covered the exchange rate and may have included the possibility of FX intervention. Mitsubishi UFJ Morgan Stanley Securities senior bond strategist Keisuke Tsuruta said Bessent’s past actions have helped create conditions conducive to BOJ tightening and that the meeting could prompt market bets on faster hikes. Sumitomo Mitsui analyst Lisa Mochizuki noted USD/JPY in the mid-161s increases the likelihood the BOJ will signal a more hawkish stance, which could push mid-dated JGB yields higher.

Eurozone private sector contracted for a third consecutive month in June but the pace of decline eased, with S&P Global Market Intelligence's preliminary composite PMI rising to 49.5 from 48.5 in May, a three-month high. S&P Global Market Intelligence chief business economist Chris Williamson said the PMI suggests the economy "is showing enough resilience to largely avoid recession" and points to GDP being broadly flat in Q2. New orders fell for a fourth month but the drop moderated; manufacturing new orders edged up slightly while services demand remained weak and a small rebound in leisure and tourism did not offset the broader decline in new business. Refinitiv's early-June poll forecast 0.1% growth for the quarter.