2-year government bond futures (TS) most-active contract up 0.03%; 5-year (TF) up 0.09%; 10-year (T) up 0.11%; 30-year (TL) up 0.32%.

Under a new US-EU trade agreement the EU has pledged to buy $750bn of US energy products over the next three years, with LNG to account for the bulk. Higher Asian gas prices have drawn US exporters eastward, and European purchases of US LNG fell in June to a two-year low. EU gas storage sits near a 15-year low for the season after last winter’s drawdown, Middle East tensions and supply disruptions, leaving winter supply pressure elevated. A 2027 ban on Russian LNG imports would, by some estimates, leave the US supplying as much as 80% of EU LNG imports. At the same time EU restrictions on North Sea and Arctic oil and gas development limit domestic production upside. Measures meant to reduce reliance on Russian energy could therefore increase Europe’s dependence on US supplies.

HSBC chief economist Paul Bloxham said Australian house prices pulled back in June but that is just the start. He cited major recent changes to taxation of investment properties and three Reserve Bank of Australia rate hikes as having rapidly weakened investor demand. Bloxham forecasts national house prices could fall up to 8% from now through the end of next year and said June’s pace of decline implies downside risk. He added: "Buckle up."