EGBS: Spreads To Bunds Little Changed To Wider

US President Donald Trump posts on Truth Social, "I just made a Trade Deal with Vietnam. Details to follow!". When Trump first announced his 'Liberation Day' 'reciprocal' tariffs in April, Vietnam was in line for a levy of 46%, one of the highest rates of any country worldwide. Last week, Vietnamese Prime Minister Pham Minh Chinh said, while speaking at a panel event, that "I hope that you will see that the result [of trade talks] will come earlier than two weeks...Vietnam and the US share a deep understanding on tariffs... I hope that all the positive things will come for us."

• Despite Vietnam becoming an increasingly important geopolitical actor in Southeast Asia as one of the few countries not firmly aligned with the US or China, the White House risked a notable deterioration in its trade relations with Hanoi over the high tariff rate.
• The US has voiced concern that Vietnam has been acting as a transhipment hub for Chinese products, sparking a flurry of gov't action to halt the trade in Vietnam. Reuters also reports, "Additionally, Vietnam has expressed willingness to reduce non-tariff barriers and expand imports of U.S. goods, including planes, agricultural products and energy, though no formal purchase agreements have been announced."

An initiatial procedual vote in the House of the Representatives on the GOP's 'Big Beautiful Bill' has stalled amid lukewarm support from Republicans and low attendance. With the vote still open, House Speaker Mike Johnson (R-LA) remains over 20 votes short of clearing a vote to proceed to the rule - the most meaningful procedural vote. The slow progress points to a protracted process of lobbying from the White House and GOP leadership to get the bill across the line. 

• The tepid support likely comes from both the large contingent of wavering House Republicans who have expressed misgivings about the bill, and bad weather in the area, leaving GOP reps stranded.
• Jake Sherman at Punchbowl notes on X: "This vote has been open for a long time. 38 GOP absences still and not moving. Some may be in town and at meetings. Others simply haven’t made it back. They need everyone here to do this vote."
• President Trump has issued two statements on Truth Social in the last hour, urging House Republicans to line up behind the bill: "Republicans, don’t let the Radical Left Democrats push you around. We’ve got all the cards, and we are going to use them."
• In a separate post, Trump stressed that "THE ONE BIG BEAUTIFUL DEAL IS ALL ABOUT GTOWTH. IF PASSED, AMERICA WILL HAVE AN ECONOMIC RENAISSANCE LIKE NEVER BEFORE." This is likely to be the argument the White House will present to conservative fiscal hawks throughout the day. 

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