GOOD MORNING! Reports of more ships making it through the Strait of Hormuz pushed oil prices lower. In turn, easing of inflation concerns shifted the Treasury yield curve lower with longer duration bonds leading the way, even as the narratives from the two sides- the US and Iran- in negotiations appear to be in conflict. The 5-year T-note auction came and went in the face of the rallying Treasury market. The attempt to rebound tech stocks turned out just to be mostly an attempt as it provided an opportunity for sellers to cash in.

     Micron’s blow-out earnings and forward guidance has investors/traders falling back in love with AI and AI-related stocks. The tech-heavy Nasdaq 100 and NASDAQ Composite Indexes are leading a rally in the stock index futures in early trading. Oil is drifting lower and Treasuries are little changed but looking a kittle tired after yesterday’s rally and ahead of a full slate of data and more Treasury auctions. On tap this morning are weekly jobless claims, revised 1st quarter GDP, preliminary May durable/capital goods orders and May’s personal income, spending, savings and PCE Deflators. Like CPI and PPI, the Deflators are anticipated to run hot, but with the WTI futures contract trading slightly below $70/bbl. the markets may take the inflation gauges with a grain of salt. On the auction blocks are $70 billion 4-week T-bills, $75 billion 8-week T-bills and $44 billion 7-year T-notes.