Morning Juice – US Session Prep (26th May)

Seintment
The dollar nudged higher, and Brent crude gained, following reports of confrontations between US and Iranian personnel overnight, just hours after US President Donald Trump emphasized that conversations with Tehran were ongoing. US 10-year Treasuries trimmed previous gains on reports of the strikes. Yields have jumped as much as five basis points to 4.5% in catch-up trading after a US public holiday on Monday. The European Central Bank should hike interest rates next month, even if the war in the Middle East is quickly resolved, according to Executive Board member Schnabel. A key Treasury yield difference dropped to its smallest level in a year as traders increased wagers that the Federal Reserve may maintain interest rates higher for longer under incoming chairman Kevin Warsh.

Docket
10:00 ET
US CB Consumer Confidence for May
Forecast: 92 | Prior: 92.8 | Range: 96.4 / 89.3

13:00 ET
US 2-Year Note Auction
Prior High Yield – 3.812%
Prior Bid-to-Cover – 2.65

Speakers & Events
9:00 ET
ECB’s Sleijpen Speaks

Good Luck!