EUROZONE T-BILL ISSUANCE: W/C 30 June

Mexican President Claudia Sheinbaum has confirmed in her daily presser that she has received an invite from Canadian PM Mark Carney to attend the G7 leaders summit taking place in Kananaskis, Alberta, from June 15 to 17. She says that at present she is not sure whether to attend, but that if she does, there is the prospect of a first face-to-face meeting with US President Donald Trump. 

• As well as the seven members (United States, Canada, Japan, the United Kingdom, France, Germany and Italy, plus the European Union as a “non-enumerated member,”), the host country is allowed to invite an unspecified number of observer or guest countries to attend.
• Canada's Globe and Mail reported earlier in the week that Carney had extended an invite. With all members of the USMCA trade agreement potentially in attendance, there will be widespread expectation of a sidelines meeting involving all three leaders should the Mexican president attend the summit. A first trilateral involving Trump could allow Mexico and Canada to avoid being 'played off' against one another.
• G&M: "Goldy Hyder, president of the Business Council of Canada, has been aggressively pushing the Carney government behind the scenes to invite Ms. Sheinbaum to Kananaskis. “It’s a no-brainer because we share a continent with this other democracy,” Mr. Hyder said. “To have her there, someone who has been very effective in managing and working with the President, someone the President has fondness for, is not a bad ally,” he said, referring to Mr. Trump."

The Richmond Fed's May business surveys showed no discernable change in heightened inflation dynamics seen in prior months.

• In manufacturing, current prices paid were unchanged vs April at 5.4% (all prices are expressed as reported price changes versus 12 months earlier), with prices received 2.7% (compare these to 2.4% / 1.2%, respectively, at the start of 2025). Inflation expectations (expected price change in next 12 months) dipped by 1ppt (prices paid to 7.0%, received 5.0%) but were still very high (4.0%/3.0% respectively at the start of 2025).
• Similarly for services, current prices received was unchanged at 3.0%, with prices paid up 0.1pp to 5.0% (3.6% and 4.7% at the start of 2025). Expectations were mixed, potentially suggestive of tougher margin pressures: expected 12M prices paid ticked up to 6.0% from 5.9%, with received down to 3.6% from 4.2% (respectively these were 4.1% / 3.6% at the start of 2025).
• Overall price pressures looked elevated in the region, though look short of the heights of the pandemic supply chain/reopening price pressures. And again, the survey was conducted on both sides of various tariff developments, most notably May 12's US-China truce, so June's survey may provide a more relevant snapshot.

Latest block trade lodged at 10:28:05 NY/15:28:05 London:

• TUU5 5K lots blocked at 103-18.75, looks like a seller.
• DV01 ~201K.