US: More Americans Disapprove Than Approve Of Big Beautiful Bill

• -6,500 FVU5 108-22, sell through 108-22.25 post time bid at 1355:01ET, DV01 $281,000.
• The 5Y contract trades 108-21.5 last (+2.25)

At least $16.45B to price Tuesday

• Date $MM Issuer (Priced *, Launch #)
• 06/24 $2.5B #Kazakhstan $1.35B 7Y 5%, $1.15B 12Y 5.5%
• 06/24 $2.25B #Nomura $1B PerpNC5.5 7%, $750M 5Y +105, $500M 10Y +120
• 06/24 $2.2B #Imperial Brands $850M 3Y +85, $850M 10Y +140, $500M 30Y +158
• 06/24 $2B International Finance Corp (IFC) 5Y SOFR+41
• 06/24 $1.5B #Toyota $500M 2Y +38, $500M 5Y +60, $500M 10Y +77
• 06/24 $1.5B #Westpac $750M 5Y +50, $750M 5Y SOFR+82
• 06/24 $1.5B *Denmark 2Y +4
• 06/24 $1B *JBIC 3Y SOFR+44
• 06/24 $1B *CAF 3Y SOFR+69
• 06/24 $500M #China Development Bank 5Y SOFR+30
• 06/24 $500M #Ladder Capital 5Y +167
• 06/24 $Benchmark American National Group 10Y +175
  • Expected Wednesday:
  • 06/25 $Benchmark Swedish Export Cr 2Y SOFR+36a

European FI traded mixed Tuesday, with Gilts gaining and easily outperforming Bunds, and periphery EGB spreads tightening.

• Germany's Q3 issuance plan was in line with expectations though the curve steepened on indications of possible 50Y issuance, helping pressure the broader FI space. But lower oil prices on the overnight US/Iran/Israel de-escalation helped subdue any short-end yield rise.
• Global core FI regained ground by middle of the European afternoon however, led by Treasuries as Fed Chair Powell was seen to be open to earlier rate cuts if data warranted, while US consumer confidence and labor market indications were weaker than expected.
• In European data, German IFO Business Climate/Expectations beat expectations. There were several central bank speakers, with BOE's Ramsden perceived dovishly, while ECB's Lane drawing headlines for seeing some caution on services disinflation (though nothing really new).
• The German curve bear steepened on the day, with the UK's leaning bull flatter (out to the 10-year segment).
• Periphery/semi-core EGB spreads tightened in a risk-on session, with BTPs outperforming.
• Wednesday sees a quieter central bank communications schedule, with BOE's Lombardelli the lone scheduled speaker, while in data we get French consumer confidence and Spanish GDP/PPI readings.

Closing Yields / 10-Yr EGB Spreads To Germany

• Germany: The 2-Yr yield is up 1.3bps at 1.851%, 5-Yr is up 2.1bps at 2.131%, 10-Yr is up 3.6bps at 2.543%, and 30-Yr is up 6.5bps at 3.026%.
• UK: The 2-Yr yield is down 1.7bps at 3.872%, 5-Yr is down 1.7bps at 3.991%, 10-Yr is down 1.9bps at 4.473%, and 30-Yr is down 0.4bps at 5.208%.
• Italian BTP spread down 5.5bps at 91.9bps / Greek bond spread down 3.5bps at 73.9bps