Morning Juice – US Session Prep (27th May)

Sentiment
US Treasuries climbed as oil prices held near their lowest level in a month, but the dollar remained unchanged. Brent crude slipped back below $100 per barrel as US President Donald Trump announced that peace talks with Iran were underway, despite rising Middle Eastern tensions. The surge in US stocks is expected to extend into a fifth day as confidence about artificial intelligence, cheaper oil costs, and falling bond yields prompted traders to become further confident. The RBNZ kept interest rates constant as predicted, but indicated that it will most likely need to raise them soon, while Australia’s headline CPI data for April was lower than expected, prompting traders to knock back expectations for RBA rate hikes this year. The fast spike in memory-chip stocks is intensifying, propelling the market capitalizations of SK Hynix and Micron Technology beyond $1 trillion for the first time, as investors anticipate the AI boom will lead to a prolonged revaluation of the industry.

Docket
13:00 ET 
US sells $70 bln 5-Year Notes
Prior High Yield: 3.955%
Prior Bid-to-cover: 2.33

Speakers
11:00 ET
Trump participates in a Cabinet Meeting

15:55 ET
Fed’s Cook [FOMC Voting Member] speaks on AI, the Economy, and Financial System Stanford Institute for Economic Policy Research (SIEPR) Policy Forum
Text: Yes. Q&A: Yes, moderator.

16:10 ET
RBNZ Governor Breman speaks at the Finance & Expenditure Select Committee on the MPS

Good luck!