DALY said there is a scenario in which economic growth may not be sustainable.

RBC BlueBay Asset Management analyst Russell Matthews said a coordinated US-Japan FX intervention to lift the yen is unlikely for now, as relatively stable core government bond yields reduce US willingness to act. He warned sustained yen weakness could provoke larger moves in Japanese government bond yields — 10-year JGBs approaching 3.0% — with potential spillovers to USTs and global sovereigns that would increase the case for coordinated intervention. The firm remains neutral on the yen; Matthews added Tokyo's interventions appear "increasingly random and sporadic."

TIMIRAOS: US unemployment rate in June was 4.189%, the lowest since June last year (4.140%).