STIR FUTURES: BLOCK: Sep'25 SOFR Buy

• US TSY 4Y-10M TIPS AUCTION: HIGH YLD 1.650%; ALLOTMENT 93.57%
• US TSY 4Y-10M TIPS AUCTION: DEALERS TAKE 6.55% OF COMPETITIVES
• US TSY 4Y-10M TIPS AUCTION: DIRECTS TAKE 18.82% OF COMPETITIVES
• US TSY 4Y-10M TIPS AUCTION: INDIRECTS TAKE 74.62% OF COMPETITIVES
• US TSY 4Y-10M TIPS AUCTION: BID/COV 2.53

Bloomberg reporting that German Chancellor Friedrich Merz, speaking at the G7 Leaders’ Summit in Canada, said the US will decide today "whether to join Iran conflict,” noting the US decision “depends on whether Iran negotiates.” The comments are the latest in a series of hawkish remarks from Merz that have aligned Berlin firmly with Israel’s operation against Iran. 

• Politico reported earlier: "Asked in a TV interview whether Germany is expecting that the U.S. will take part in the Israeli military strikes, Merz said “we have talked about this” and that the decision depends on whether the Iranian regime “is prepared to return” to the negotiating table.”
• The comments support recent reporting from Barak Ravid at Axios that Trump will make “make decisions about U.S. policy towards the war” at a White House Situation Room meeting set to get underway at 13:00 ET 18:00 BST.
• Ravid notes: “The U.S. officials said Trump is seriously considering joining the war and launching a U.S. strike against Iran's nuclear facilities, especially its underground uranium enrichment facility in Fordow.”
• Ravid adds that two Israeli officials said, “Prime Minister Benjamin Netanyahu and the Israeli defense establishment continue to believe Trump is likely to enter the war in the coming days to bomb Iran's underground enrichment facility.”
• Even if Tehran commits to a return to nuclear negotiations, it is difficult to see Israel concluding its operations against Iran’s nuclear programme as they have long viewed nuclear talks with Washington as a delaying tactic.

• Date $MM Issuer (Priced *, Launch #)
• 06/17 $5B *EIB 7Y SOFR+50
• 06/17 $3B *KFW 2Y SOFR+26
• 06/17 $3B #UnitedHealth $500M 3Y +52, $750M +5Y +70, $1B 10Y +92, $750M 30Y +112
• 06/17 $2B #Enterprise Products $500M 3Y +45, $750M +5Y +65, $750M +10Y +85
• 06/17 $Benchmark Hyundai Capital AM: 2Y +93, 2Y SOFR, 3Y +103, 3Y SOFR, 5Y +112, 5Y SOFR, 7Y +127
• 06/17 $675M Islamic Development Bank Sukuk 5Y SOFR+58a