MNI EXCLUSIVE: Interview With Head Of Slovakian Debt Management Agency

Headlines noting that a televised message from the Iranian Supreme Leader will be aired “shortly” has provided light support to Bund futures, which are now +11 at 130.87. That brings Bunds to the top of today’s tight 34 tick intraday range. The move lower in Bunds from the June 13 high is still considered corrective for now, with key short-term support at 130.12 (June 5 low). 

• German yields are up to 1bp lower, with the belly lightly outperforming. 20/30-year Bund supply was digested smoothly.
• 10-year EGB spreads to Bunds are biased wider, with Middle East tensions capping risk sentiment. The BTP/Bund spread is back to 96.5bps, from a multi-year low of 90bps last week.
• Eurozone final May HICP confirmed flash estimates at a rounded 1.9% Y/Y (vs 2.2% prior), with core also unrevised at 2.3% Y/Y (vs 2.7% prior).
• ECB’s Panetta unsurprisingly noted that the Israel-Iran conflict presents a risk to the outlook alongside US tariffs. His remarks were not market moving.
• Several ECB speakers are still scheduled today, but more focus will be on this afternoon’s US jobless claims data and the FOMC decision this evening.