Bonds & Stocks
Treasuries headed for their best week of performance since April, driven by strong auctions and cooling inflation data. Yields on two- to 30-year tenors are set for the biggest weekly gains in two months, trading at 3.92% and 4.85% respectively.
Economy
The White House confirmed US tariffs on steel and aluminum will double to 50% from June 4, following US President Donald Trump’s earlier announcement. This will affect around 6% of US goods imports and add roughly 1.1 percentage points to the average effective tariff rate.
World
Israel's surprise attack on Iran risks escalating into a wider war that could drag in the US and pose a threat to oil supplies and the global economy. Oil has risen from about $67 a barrel earlier in the week to about $75 since Israel’s attack. In a worst-case scenario in which Iran takes the unprecedented step of shutting the Strait of Hormuz, we estimate oil could go as high as $130.