FOREX: USD Trades on Firmer Footing, JPY Volatility Stands Out

• Tsy futures retreat slightly (TYM5 -1 at 110-25) after the latest $69B 2Y note auction (91282CMY4) tailed: 3.795% high yield vs. 3.790% WI; 2.52x bid-to-cover vs. 2.66x prior.
• Peripheral stats has Indirect take-up falls to 56.18% from 75.77% prior, directs surge to 30.08% vs. 13.58% prior, primary dealer take-up 13.74% vs. 10.65% prior.
• The next 2Y auction is tentatively scheduled for May 27.

• US TSY 2Y NOTE AUCTION: HIGH YLD 3.795%; ALLOTMENT 77.99%
• US TSY 2Y NOTE AUCTION: DEALERS TAKE 13.74% OF COMPETITIVES
• US TSY 2Y NOTE AUCTION: DIRECTS TAKE 30.08% OF COMPETITIVES
• US TSY 2Y NOTE AUCTION: INDIRECTS TAKE 56.18% OF COMPETITIVES
• US TSY 2Y AUCTION: BID/CVR 2.52

White House Press Secretary Karoline Leavitt is shortly due to brief reporters from the White House. LIVESTREAM

• At 16:30 ET 21:30 BST, President Donald Trump will participate in a White House ‘swearing-in’ ceremony for Securities and Exchange Commission chairman Paul Atkins, who formally assumed the seat yesterday.
• Trump said in a message on Truth Social after speaking with Israeli Prime Minister Benjamin Netanyahu earlier this afternoon: "The call went very well—We are on the same side of every issue," noting that the pair discussed "numerous subjects including Trade, Iran, etc."
• The Jerusalem Post reports that Trump is expected to meet with Qatari Prime Minister Mohammed bin Abdulrahman Al Thani during his Washington visit today. Al Thani is scheduled to meet with VP JD Vance and Middle East envoy Steve Witkoff to discuss Gaza ceasefire negotiations and Iran.
• Trump appears to be backing Defense Secretary Pete Hegseth, for now, amid another escalation in the controversy over his use of non-secure messaging services. NPR reported yesterday that the White House is looking to replace him. The White House rejected that report.
• NOTUS reports that some sources “are expecting more details about Hegseth’s conduct in the past month to come out this week.”