Fixed Income Morning Report, 6-1-26

A softer start for fixed income as the energy space climbed in European hours, given a handful of detrimental updates on the US-Iran situation. Since, the press conference from Iran's spokesperson has provided further support to energy, with Araghchi noting that no negotiations have taken place on the details of the nuclear issue.
USTs are lower by 4+ ticks at 109-22 having had a 109-20/109-26 range while SFRZ6 down 3BP to 96.14 back to an 88% chance of a hike this year. Specifics for the US and Europe are a little light aside from a few Central Bank speakers, with the focus firmly on any geopolitical updates or a significant change to the equity space

on the docket today; 8:45 am S&P final U.S. manufacturing PMI May 9:00 am ISM manufacturing May 9:00 am Construction spending April 10:50 pm Minneapolis Fed President Neel Kashkari speech in South Korea TBA Auto sales May -- 15.9 million

Video link: https://youtu.be/9quN6POMyDI