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Golden Ten Data reported on June 1 that as investors weigh interest rate hike prospects and growing concerns over government fiscal health, the recent rally in Indian bond yields is likely to continue. Since the outbreak of the Iran war three months ago, the benchmark 10-year government bond yield has risen by around 34 basis points to 7%. IndusInd Bank expects the yield to reach 7.45% by the end of 2026, while Kotak Mahindra Bank anticipates its trading range will be between 6.8% and 7.4% by March next year. The Reserve Bank of India may face pressure to raise borrowing costs in Friday’s rate decision, as the weakening rupee and rising oil prices exacerbate inflation concerns. Although most economists expect the central bank to keep rates unchanged for now, derivatives markets are pricing in aggressive rate hike expectations, with five-year interest rate swaps rising over 60 basis points since the outbreak of the war. Shorter-term government bonds bore the brunt of this selloff, with the five-year yield climbing 54 basis points. Investors will be watching for signs of a more hawkish stance from the central bank. Tata Asset Management and Bandhan AMC project rate hikes of around 75–100 basis points during this cycle.

The largest fluctuation was seen in the overnight CNY HIBOR rate, which fell by 14 basis points. According to the updated data in the chart, the overnight onshore CNY HIBOR is at 1.00%, down 14 basis points; 1-week at 1.20%, down 10 basis points; 2-week at 1.25%, down 9 basis points; 1-month at 1.41%, down 1 basis point; 2-month at 1.47%, up 2 basis points; 3-month at 1.56%, down 1 basis point; 6-month at 1.62%, down 2 basis points; 9-month at 1.64%, down 2 basis points; and the 1-year onshore CNY HIBOR is at 1.65%, down 2 basis points. BP = basis point

BlockBeats reported that on June 1, Solana developer cavemanloverboy published the proposed SIMD 547 proposal, which aims to improve the SOL token economic model through a base fee burn mechanism based on resource consumption. The proposal suggests charging a base fee of 0.1 lamport per cost unit for each transaction, which would be entirely burned. Currently, the daily base fee burn on the network is only about 648 SOL, which is negligible compared to the inflation rate of approximately 60,000 SOL per day. According to community testing data, if implemented, this mechanism is expected to increase daily burned SOL by about 1,500–1,800. It would affect market maker fees by around 3–5%, while the impact on regular users' transaction costs would be relatively large, with increases in some scenarios exceeding 600%. The proposal clearly states that this mechanism can only be activated after the Alpenglow consensus upgrade is enabled, and it is currently still under community discussion.