The yield on Japan's 5-year government bonds continued its decline, falling 2 basis points to 2.14%.

NetEase (09999.HK) will announce its second-quarter results on Thursday. According to a FactSet survey of nine analysts, NetEase's second-quarter net profit is expected to increase by 13% year-on-year to RMB 9.72 billion, while adjusted net profit is expected to increase by 7.3% year-on-year to RMB 10.23 billion. Nomura analysts cautioned that due to NetEase's holdings in Alibaba and Pinduoduo, related investment losses may widen, thus the actual net profit may be lower than expected. NetEase's second-quarter revenue is expected to increase by 4.3% year-on-year to RMB 29.1 billion, mainly supported by the solid performance of long-running games such as *Fantasy Westward Journey* and *Egg Party*. Furthermore, Nomura analysts predict that NetEase's game *Forgotten Sea*, launched in July, will generate monthly revenue of RMB 200 million to 300 million, potentially accelerating the growth of NetEase's game revenue in the second half of the year. According to Citigroup, NetEase currently has 57 games in development, of which 23 have been approved for release in China. Updates to the release schedule for new games by management could be an additional catalyst for the share price.

The yield on Japan's 5-year government bonds fell 1 basis point to 2.15%.

According to the Financial Times, Libya is seeking up to $40 billion in funding to develop its oil resources.

Data from the U.S. Treasury Department shows that foreign holdings of U.S. Treasury securities declined in June, primarily due to reductions in holdings by Japan, the UK, and China. Total foreign holdings fell to $9.299 trillion in June from $9.371 trillion in May, but still increased by 2.3% year-on-year. Japan remains the largest holder outside the U.S., although its holdings declined by 2.3% to $1.116 trillion, well below the peak of $1.325 trillion in November 2021. Data from the U.S. Treasury Department's International Capital System shows that foreign investors net liquidated approximately $72 billion in U.S. Treasury securities in June, with Japan, China, and some custody centers being net sellers, and Canada, Belgium, and Switzerland being net buyers. Foreign net selling over the past three months totaled $56 billion, while net buying over the past 12 months totaled $205 billion. Total inflows into the U.S., including equities, remained strong in June at $173 billion. ING stated that with the 60-day U.S.-Iran ceasefire agreement expiring without a resolution, coupled with continued issuance pressure from mega-corporations, the tone of the U.S. Treasury market remains bearish and may decline further. The bank attributes the recent rise in real yields to a return to pre-financial crisis levels, rather than a genuine market misalignment. In the Eurozone, the ECB's balance sheet reduction has led to tighter liquidity, which will ultimately support a structurally bearish outlook for German government bonds.

Trader: RBI may sell dollars to limit rupee depreciation.