SECURITY: Trump Speaks On NATO & Iran-Israel Ceasefire

German ASWs move lower this morning, on relief stemming from President Trump’s delay of the 50% EU tariffs.

• Spreads vs. 3-month Euribor are ~1.3bp lower across the curve, with essentially all of the widening that followed Trump’s initial Friday outlining of the tariff on the EU unwound.
• This suggests that the market is viewing a move back to the pre-Trump social media comment norms as the likely outcome, given the “very good” talks held over the weekend and Trump’s recent history of watering down tariff threats.

Another block trade lodged in Bobl futures, 3,480 lots blocked at 118.840, although prevailing quotes point to a buyer, price action would suggest it was a seller once again. DV01 ~EUR216K.

President Trump’s EU tariff delay pushed TY futures through Friday’s lows in early Asia trade, with the contract in a holding pattern since then, last -0-08 at 109-26+ vs. session lows of 109-24+.

• Initial support of note at the May 22 low (109-13), with bears remaining in technical control despite Friday’s rally.
• A reminder that cash Tsys are closed for the Memorial Day holiday and futures will close early (13:00 NY/18:00 London).
• Roll activity is boosting volumes, latest estimated roll completion updates below:
• TU: 55.4%
• FV: 54.1%
• TY: 55.5%
• UXY: 43.6%
• US: 57.5%
• WN: 55.5%