BUNDS: Next Round Of Bearish Targets Untouched Despite Fresh Pressure

Israel's N12 reports comments from Defence Minister Israel Katz, saying "The rule for Dahieh in Beirut is the same as the northern settlements", indicating that any Hezbollah attack on Israel's northern communities will result in renewed Israeli strikes on the southern suburbs of the Lebanese capital, which are a stronghold of support for Hezbollah. Katz adds, "We categorically reject Iran's threats. Any Iranian attempt to link Lebanon and Iran and attack Israel will be met with great force". As noted earlier (ISRAEL: Full Security Cabinet Meeting @ 21:00 Local As Both Sides Halt Strikes) the Israeli gov't is intent on continued strikes on Hezbollah in the south of Lebanon.

• Comes as Iran's Parliamentary speaker Mohammad-Bagher Ghalibaf posts on X: "We disrupted the equation of a ceasefire on paper and its repeated violations in the field. As long as there is no genuine will to build trust, the response of the Islamic Republic will be the same."

For the full document including BOE balance sheet tracker, projected gilt market cash flows and issuance calendars / results here.

• We still have a number of important releases between now and next week's MPC meeting.
• We think that the Agents' survey (ASBC) as well as the BOE / Ipsos Inflation Attitudes survey will be important on Friday while monthly GDP data will also be watched.
• At this stage, we think that the bar for any of the other MPC members to join Pill, probably Greene and possibly Mann in voting for a hike next week is high. Lombardelli, Ramsden and Governor Bailey seem like the swing voters on the MPC at present with Breeden, Dhingra and Taylor all seemingly more comfortable in leaving Bank Rate on hold for longer. We think we would need to see something particularly adverse in order for any of the swing voters to be persuaded for a June hike, but the longer energy prices remain high the more likely a hike is. So we still think there is a good chance of a July hike.
• We look into these in more detail in the full document.

"*ISRAEL REJECTS IRAN’S WARNING NOT TO HIT LEBANON: KATZ" - bbg