US 4-week Treasury auction bid-cover ratio 2.61, down from 3.02 previously.

Japan 5-year government bond yield rose to 2.4%, a fresh record high.

JGB yields rose after US Treasuries jumped overnight on stronger-than-expected US data and firmer Fed rate-hike bets. Greater Fed tightening could accelerate USD/JPY gains, fueling speculation the Bank of Japan might need to tighten to curb upside inflation risk. Investors are monitoring developments in the Middle East and the US-China summit. Curve steepened: 2-year +2 bps to 1.920%, 10-year +3.5 bps to 3.110%, 40-year +5.5 bps to 4.255%.