El-Erian said if the FT report that Norway’s sovereign wealth fund plans to cut U.S. Treasury holdings by about $80 billion is confirmed, it would further indicate that a cohort of long-standing, stable buyers of U.S. debt is diminishing. He cited shifts in Japan and GCC economies driven by rising domestic financing needs.

Japan's budget requests for the coming fiscal years expanded to ¥143.1 trillion (about $917.8 bln) after the government adopted a unified framework combining initial and supplementary budgets, the Finance Ministry said on Friday. Driven by Prime Minister Sanae Takaichi's expansionary fiscal agenda, the increase has pushed government borrowing costs to a 30-year high and sharpens market focus on next year's JGB issuance size. The total exceeds the ¥140.61 trillion comprehensive spending package finalized in Takaichi's first year—comprised of a ¥18.3 trillion FY25 supplementary budget and a ¥122.3 trillion FY26 initial budget—and is roughly comparable in scale to pandemic-era support measures.

US 4-week Treasury bill auction to Sept. 3 — stop-out yield 3.70%, prior 3.65%.