China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
Gold Prices Slide as Rate Cut Prospects Diminish; Copper Gains on China Stimulus Hopes 
RBNZ Raises Interest Rates to 2.50%, Signals More Tightening as Inflation Risks Persist 
US Gas Market Poised for Supercycle: Bernstein Analysts 
UBS Boosts China Tech Bets, Adds Kuaishou and Meituan to Focus List 
Morgan Stanley Names Marks & Spencer Top European Retail Pick, Sees Strong Upside 
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
Morgan Stanley Says China’s Reusable Rocket Progress Poses Long-Term Challenge to SpaceX 
RBA Minutes Signal Australia Central Bank Remains Ready to Raise Interest Rates if Inflation Persists 
Japan Signals Surprise Yen Intervention Strategy as BOJ Hawkish Stance Puts FX Traders on Alert 
The US Federal Reserve has recently given a vibrant indication that the tightening cycle is over. Quantitative tightening will also end earlier than previously expected, helping to ensure global liquidity remains flush.
Treasuries continued to rally, with movements concentrated in the front end, steep ending the 2s/10s curve. Longer-dated USD swap spreads have narrowed sharply on convexity, hedging flows from RMBS investors.
The US Treasuries price action continued where it left off last week, with 10-year yields down another 2.5bps. USD swap spreads have capitulated on convexity hedging flows: 10-year swap spreads are now at their lowest since 2017. German bund yields were dragged lower by Treasuries after an initial sell-off following positive IFO Survey data. There was a widening of peripheral spreads in European yields, with Italian, Spanish and Portuguese yields up 3-5bps. Equity markets were broadly lower, with the FTSE closing off 0.4%, the DAX down 0.2%. The Dow Jones was up 0.1% and the Nasdaq was flat. The Apple services launch was not particularly well received by investors (AAPL -1.6%). WTI is currently up 0.7% at USD59.98/b, while gold is up 0.6% higher at USD1,322/oz.
Trading tips: Stay long in 3Mx2Y vs 3Mx30Y ATMF swaption straddles, simultaneously uphold longs in 3Mx2Y ATMF straddles with $1.5bn notional (notification 6/3/19, maturity 6/5/21, strike: 2.63%) at 35c vs selling 3Mx30Y ATMF straddles with $141mn notional (notification 6/3/19, maturity 6/5/49, strike 2.92%) at 415c. P/L since inception: +3.1abp. Courtesy: ANZ & JPM
Currency Strength Index: FxWirePro's hourly EUR spot index is flashing 19 (which is mildly bullish), while hourly USD spot index was at 108 (bullish) while articulating (at 09:50 GMT).
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex
