Morgan Stanley Fixed-Global Macro Commentary June 21-108807113

MUpdateGlobalMacroCommentary|NorthAmericaJune21MorganStanley&Co.LLCAlexandraMaierStrategistAlexandra.Maier@morganstanley.com+1212761-0428MorganStanley&Co.Internationalplc+DominicJKrummenacherStrategistDominic.Krummenacher@morganstanley.com+44207425-9781MorganStanley&Co.LLCLenoyDujonUS/CanadaEconomistLenoy.Dujon@morganstanley.com+1212761-2779MorganStanleyMUFGSecuritiesCo.,Ltd.+HirokiYagiResearchAssociateHiroki.Yagi1@morganstanleymufg.com+8136836-5412MorganStanleyAsiaLimited+MinDaiStrategistMin.Dai@morganstanley.com+8522239-7983WeakEuroareaPMIssupportglobaldurationrally;USTsretracegainsafterbeatinUSPMIs;10yOAT/Bundwidenstohighestlevelsince2012;BoJ'sUchidaopentoratehike;THBoutperformsamidannouncementofnewMoFmeasures;USDstrengthens;DXYat105.83(+0.2%);US10yat4.255%(-0.4bp).•Weaker-thanexpectedpreliminaryEuroareaPMIsspurEuropeandurationrally(2yBund:-4bp)andweighonEuropeanequities(EuroStoxx:-0.8%).•USTsretraceovernightgainsafterpreliminaryJuneUSServicesandManufacturingPMIsbeatexpectations;underlyingdetailsshowpricepressurescooled,whichcapsthesell-offandUSTscloserelativelyunchanged.•FrenchbondriskpremiumcontinuestoriseaheadoftheFrenchelectionsandamidreportsoftheleftistalliance'sspendingplans;10yBund/OATspread(+3bp)closesat80,thehighestlevelsince2012.•BoJDeputyGovernorUchidasignalsopennesstoahike,notingthatthe“Bo...