China issued 2.07 tln yuan of new special bonds in 1H, with issuance about 47% complete, the Ministry of Finance's Debt Management Department said. Proceeds are concentrated on municipal and industrial-park infrastructure, transport, urban renewal and social services; special bonds used as project capital exceeded 170 bln yuan to better leverage government investment.

A rebound in oil prices has increased inflation expectations and raised the probability of a Bank of England rate hike later this year, pushing UK gilt yields higher. UK annual inflation slowed to 2.6% in June from 2.8% in May after a temporary June oil dip following a US–Iran ceasefire; with the Middle East conflict flaring again, oil has resumed rising. Brent was up 2.4% at $93.30 per barrel; the UK 10-year gilt yield rose 1.3 bps to 5.041%.

Hong Kong large-model AI stocks opened higher but reversed to losses; Zhipu AI (02513.HK) down over 3%, MINIMAX-W (00100.HK) down over 4%.