SEB chief strategist Jussi Hiljanen said in a note the rally in German government bonds may be near its end after the 10-year bund yield fell to about a multi-month low of 2.85%. He said a sustained move below 2.80% would require a clear dovish shift in the ECB policy outlook, which he judges premature. SEB expects the 10-year bund yield to recover to 2.90–3.00% ahead of the ECB meeting on July 23. Hiljanen added the longer-term trajectory will largely depend on whether markets begin to price fu

According to officials, Iran is proposing security, protection and environmental service fees for passage through the Strait of Hormuz that could generate about $40 bln a year for participating states if implemented. Officials say the plan would give Tehran cash flow and control it did not previously possess and is modelled on international precedents including the Dardanelles, where Turkey levies a transit charge known as the "gold franc." Iran is pitching the proposal to Gulf neighbours and other countries and seeks to include them in a revenue-sharing arrangement. Parliament speaker Ghalibaf visited Oman on Tuesday to discuss the proposal, saying management of the strait will not revert to the previous status quo.

At the morning open, China’s 2-year government bond futures (TS) most-active contract fell 0.01%, 5-year (TF) unchanged, 10-year (T) unchanged, 30-year (TL) up 0.10%.