U.S. Strategic Petroleum Reserve crude stocks fell about 5.3 million barrels last week to 293.4 million barrels, the lowest level since 1982.

US Aug New York Fed manufacturing index and Canada July CPI (MoM) due in 10 minutes.

German and Italian experience suggests a sustained, significant drop in ultra-long JGB yields is unlikely. If market concern that the BOJ is behind the curve abates, 30-year JGB yields may fall, but such declines are likely temporary. Fiscal worries that widen JGB ASW spreads can push ultra-long yields back up. Even with stable inflation expectations and ASW, uncertainty over the terminal BOJ policy rate can prevent a sustained downtrend—European 30-year yields rose until ECB rates topped out. Near term, easing BOJ-behind-the-curve fears could shave yields briefly, but year-end debate on the next fiscal-year budget and relatively rich JGB ASW versus peers argue against a durable, trend decline in ultra-long JGB yields.