The U.S. manufacturing sector expanded for the sixth consecutive month in June, potentially signaling a shift in inflation dynamics. Meanwhile, the Bank of England is moving to shrink its balance sheet and build a demand-driven reserve system, which could test financial stability and impact banks' liquidity management. The U.S. 2-year Treasury yield hit a session low following ISM data and comments from former Fed governor Kevin Warsh, suggesting a market reassessment of Fed rate cuts.

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