Al Jazeera reported Yemen government forces shot down a Houthi armed drone on the Maqbanah front in Taiz province.

U.S. Vice President Vance said he would not call this a war with Iran.

Japanese government bonds rallied on Friday as investors bought ultra-long JGBs to unwind prior bets on a steeper yield curve amid rising odds of faster BOJ tightening and a stronger yen. The 30-year JGB yield fell 10.5bps to 3.97% and the 40-year yield dropped 13bps to 4.03%. Short-dated yields moved less: the policy-sensitive 2-year yield slipped 2bps to 1.83%. Mitsubishi UFJ Asset Management’s chief fund manager said investors who had positioned for steepening—fearing the BOJ was behind the inflation curve—are closing those trades and shifting toward flattening.