CROSS ASSET: Bonds Firm Off Lows, USD Eases

Comments from South Korea's Finance Ministry crossing the wires (headlines below via Reuters):

• "To maintain 24-hour stock market monitoring system"
• "To immediately introduce additional measures on single-stock leveraged ETFs"
• "To impose cap on investment in single-stock leveraged ETFs"
• "To increase cost of trading related to single-stock leveraged ETFs"
• "To prepare legal grounds for market stabilising measures in case of emergency"

• Treasuries are extending lows after Pres Trump said the US will be "hitting Iran hard" after latest attacks. Crude rises (WTI +3.8 at 83.05)
• TYU6 tapped 108-17 low (-9), yield +.084 at 4.6346%. Last Thursday’s sell-off resulted in a breach of key support at 108-08+, the May 19 low and a bear trigger. The breach confirms a resumption of the medium-term downtrend and opens 107-29 next, a Fibonacci projection.

More context from Fox News: 

• “We are going to beat the effing S out of them,” Trump told Fox News' Trey Yingst on Wednesday morning. “We’ll be hitting them hard. They’re going to get a beating.”
• Trump said American forces had only minutes to respond to the surprise attack and shot down the incoming missiles before they reached their targets. He said he reviewed video showing U.S. personnel calling out coordinates in real time during the interception.
• The president also said overnight U.S.-Saudi strikes against Iran-backed Shiite militias in Iraq were coordinated with the Iraqi government.
• He called the militias a “cancer on the world” and said additional warnings against Iranian proxies were under consideration.