POWER: Hungary-Slovakia Power Link Returns

Slovakia has announced it will be looking to sell the following SlovGBs at its auction next Monday, June 16:

• the 3.00% Nov-31 SlovGB (ISIN: SK4000026241)
• the 3.625% Jun-33 SlovGB (ISIN: SK4000023230)
• the 3.75% Feb-35 SlovGB (ISIN: SK4000022539)
• the 1.00% Oct-51 SlovGB (ISIN: SK4000019857)

• The fall to session low in Bund, means that the 10yr Yield is making another attempt at the 2.60%, this level held on the 29th May, and last Thursday.
• Last Thursday's low in futures was at 130.12, so far printed a 130.13 low.
• In Yield term, 2.60% isn't far, Today equates to 130.07.

Spill over from a continued uptick in oil (WTI threatening a clean break above $65.00, with Brent doing the same at $67.00) means that any demand in core global FI markets is short-lived at this stage.

• Bund & TY futures back towards overnight lows, while BTP & gilt futures print fresh session lows.
• The gilt contract is also through Friday’s low.
• Tsy & Bund curves twist steepen, while UK yields see a parallel ~2bp shift higher across the curve.
• Little of note in terms of macro news flow over the past couple of hours.
• Geopolitics remains at the fore, with newswires flagging the potential for the U.S. -China meeting on trade to drag into Tuesday, while Axios have pointed to a call between U.S. President Trump and Israeli counterpart Netanyahu at some point during the U.S. morning.