EU CREDIT SUPPLY: €€€ IPTs: Mileway Europe (MILEWY): 4yr & 7yr

Local media outlets carry comments from the Iranian Foreign Ministry noting that "the United States' responsibilities in the Zionist regime's aggression are clear, and the consequences of the escalation of tensions are also the responsibility of the United States. So far, our exchange of messages with the Americans has been in an atmosphere of distrust, and the events of the past 24 hours will fuel this distrust. The ceasefire has been continuously and repeatedly violated by the opposing parties. We will take action whenever we deem necessary to defend the country's security".

• RES 4: $100.000 - Round number resistance
• RES 3: $98.487 - 61.8% retracement of the Jan 29 - Mar 23 sell-off 
• RES 2: $78.898/89.374 - High May 19 / 13 
• RES 1: $76.515 50-day EMA         
• PRICE: $67.223 @ 08:19 BST Jun 8
• SUP 1: $61.007 - Low Mar 23 and bear trigger
• SUP 2: $60.000 - Round number support 
• SUP 3: $56.496 - Low Dec 4 ‘25
• SUP 4: $53.345 - Low Nov 28 ‘25 

A bearish theme in Silver remains intact and Friday’s sell-off reinforces this theme. The move lower has resulted in the breach of support $70.869, the Apr 29 low. Clearance of this support exposes $61.007, the Mar 23 low and a bear trigger. A breach of this price point would highlight an important bearish development. Key short-term resistance has been defined at $89.374, the May 13 high. Initial firm resistance is at $76.515, the 50-day EMA.

Gilts follow peers lower with oil bid as Iran-Israel tensions increase and the Yemeni Houthis get involved in the conflict.

• Contract bases just ahead of initial support at the June 3 low (87.43).
• A short-term bullish theme within a longer run bearish cycle remains intact.
• A break below initial support would expose the May 21 low (86.70). Meanwhile, initial resistance is located ay the June 2 high (88.65).
• Yields 3-4bp higher, curve flatter.
• 10s haven’t been able to retest 5.00% following last week’s rebound from the 4.80% area.
• UK GDP data (Friday) headlines this week’s limited domestic calendar.
• As a result, expect ongoing focus on cross-market matters and the geopolitical backdrop for much of the week.
• On the supply front, we remain on the lookout for details surrounding the syndicated tap of the 5.25% Jan-41 gilt. We look for this deal to be priced tomorrow/Wednesday, pencilling in a GBP6-8bln transaction size.