Markets Rally on Ceasefire and Dovish Powell

• Risk-on sentiment returned overnight after President Trump confirmed a ceasefire between Israel and Iran, which by all reports is holding.
• US bond yields fell after weaker-than-expected consumer confidence, strong demand at a two-year Treasury auction, and dovish remarks from Fed Chair Powell, who said: “If inflation pressures remain contained, we’ll get to a place to cut rates sooner rather than later.”
• The Conference Board’s Consumer Confidence Index dropped to 93.0 from 98.4, well below the 99.8 consensus.
• Domestically, attention turns to the May Monthly CPI Indicator today. Being mid-quarter, it gives a clearer read on services inflation. Markets expect it to hold at 2.4% y/y.