Brazil economic activity rose 2.35% YoY in June (consensus 2.30%) and fell 0.64% MoM (consensus -0.50%).

Mizuho said in a note that ahead of Friday’s preliminary euro-area PMI print, government bond yields are likely to be driven more by fund flows, oil prices and bond supply than by ECB rate expectations. It called the PMI the next key macro test. Mizuho expects the curve’s short end to remain relatively stable, while the long end could face material pressure if the global yield curve keeps steepening.

Japan June industrial capacity utilization index MoM +4.1% (previous +0.10%).