US TSYS/OVERNIGHT REPO: SOFR Dips Slightly, Relief Could Be Brief

• Treasury futures are extending lows after Axios headline that Pres Trump rejects Iran's offer to end Hormuz Strait blockade.
• TYM6 -15 to 110-12.5 low as crude prices climb higher: WTI taps $106.75.
• Technical support below at 109-24, March 27 low and bear trigger.
• Curves bear flatten: 2s10s -1.262 at 49.487, 5s30s -1.532 at 93.910.

Risk assets come under further pressure on digestion of this Axios piece, for which the link is here

• "President Trump told Axios he's going to keep Iran under a naval blockade until the regime agrees to a deal that addresses U.S. concerns about its nuclear program".
• "U.S. Central Command (CENTCOM) has prepared a plan for a "short and powerful" wave of strikes on Iran in hopes of breaking the negotiating deadlock, three sources with knowledge said.
• "For now, Trump sees continuing the blockade as his primary source of leverage, but he would consider military action if it Iran still won't cave, according to the sources. He declined to discuss any military plans in Wednesday's phone interview, which lasted around 15 minutes"

"*TRUMP REJECTS IRAN'S OFFER, SAYS BLOCKADE STAYS: AXIOS" Bloomberg