Morgan Stanley Fixed-Global Macro Commentary June 13-108695179

MUpdateGlobalMacroCommentary|NorthAmericaJune13MorganStanley&Co.LLCAlexandraMaierStrategistAlexandra.Maier@morganstanley.com+1212761-0428MorganStanley&Co.Internationalplc+DominicJKrummenacherStrategistDominic.Krummenacher@morganstanley.com+44207425-9781MorganStanley&Co.LLCLenoyDujonUS/CanadaEconomistLenoy.Dujon@morganstanley.com+1212761-2779MorganStanley&Co.Internationalplc+LorenzoTestaStrategistLorenzo.Testa@morganstanley.com+44207677-0337MorganStanleyMUFGSecuritiesCo.,Ltd.+HiromuUezatoResearchAssociateHiromu.Uezato@morganstanleymufg.com+8136836-8431MorganStanleyAsiaLimited+MinDaiStrategistMin.Dai@morganstanley.com+8522239-7983Risk-offsentimentdominatesineuroarea;USTsrallyfollowingweakeconomicdata;30yUSTauction1.5bpthrough;CBConholdandsupportsTWDandlocalequities;COPweakens;ECB'sVasleseescutsifbaselinescenariomaterializes;DXYat105.23(0.6%);US10yat4.244%(-7.2bp).•Risk-offsentimentdominatesintheeuroareaamidheightenedpoliticaluncertaintyrelatingtotheFrenchelections;Europeanequitiesfall(EuroStoxx:-2.0%),EGBspreadcomplexwidens(10yOAT/Bund:+9bp),andUSDstrengthens(DXYUSDIndex:+0.6%).•USTscontinuetheirrallyfollowingweakeconomicdata,withlower-than-expectedPPIwithcomponentsthatfeedintoPCEparticularlysoft,coupledwithanunexpectedriseinjoblessclaims.•Strong30yUSTauctionacceleratestheUSTrallywithastop-outyieldof4.403%,1...