IRELAND BOND AUCTION RESULTS: 2.60% Oct-34 IGB

• Markets are bouncing Tuesday, led higher by the reversal off Monday's pullback lows for US stock futures. The E-mini S&P has bounced off yesterday's 4832.00 to reclaim near 350 points to point to a steadier outlook into the NY crossover today.
• For currencies, this has translated to AUD and NZD strength: AUD/USD has shown back above $0.6050 NZD/USD back above $0.5600. While these recoveries amount to over 1.5%, they still nurse significant losses off last week's highs, meaning any fade in the corrective bounce will have markets re-considering recent lows.
• This leaves the USD as the poorest performing currency in G10, although the ability of the market to hold above 103.00 keeps the market technically constructive in the short-term.
• Datapoints are few and far between Tuesday, keeping market focus on the sustainability of this recovery from lows. Monday's acute volatility is another sign that markets will read credibly into any well-sourced reports of policy U-turns, keeping attention on the US news cycle and any signals from the President.
• Trump's schedule Tuesday sees numerous events - most consequential of which are his executive order signing event at 1500ET/2000BST and  comments set to be made at an NRCC dinner after markets close. 

(MNI) London - European Commission President Ursula von der Leyen has held a phone call with Chinese Premier Li Qiang regarding the current state of EU-China relations and the broader global trade environment. A Commission readout says VdL "stressed the responsibility of Europe and China, as two of world's largest markets, to support a strong reformed trading system, free, fair and founded on a level playing field." She called for a "negotiated resolution to the current situation, emphasising the need to avoid further escalation."

• VdL "emphasised China's critical role in addressing possible trade diversion caused by tariffs, especially in sectors already affected by global overcapacity. The leaders discussed setting up a mechanism for tracking possible trade diversion and ensuring any developments are duly addressed."
• The Commission president also "recalled the urgency for structural solutions to rebalance the bilateral trade relationship and ensure better access for European businesses, products and services to the Chinese market."
• Amid the imposition of 'reciprocal' tariffs by the US, retaliatory tariffs from China, and the threat of even more substantial tariffs from the US in response, the EU is wary of being caught in the economic crossfire. This threat comes in the form of goods originally intended for the US market being diverted to the EU at discounted prices, threatening local producers. European Trade Commissioner Maros Sefcovic, speaking on 7 April, offered little indication that substantial progress was made on the issue of Chinese 'overcapacity' during his Beijing visit last week.