06:30 AM EDT, 05/20/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Tuesday highlighted:

Markets: United States Treasuries extend gains in late New York, trade sideways in Asia. Japanese government bond yields jump after "poor" 20-year auction. Equities remain supported, e-minis off their highs. Foreign exchange and oil little changed.

Fed: Federal Reserve Bank of New York President John Williams doubts that the Fed will have sufficient information for a rate cut by June or July. Atlanta Federal Reserve President Raphael still sees one cut this year, says Fed has to wait three to six months to see how uncertainty settles. Dallas Federal Reserve President Lorie Logan reiterates calls for banks to use the discount window and standing repo facility.

U.S.: Freedom Caucus Chair Andy Harris predicts deal on the proposed tax bill will be delayed until June.

Russia-Ukraine war: President Donald Trump says he had an "excellent" conversation with Russian President Vladimir Putin, peace talks would begin immediately. Putin says Russia is ready to work on a memorandum on a possible future peace accord. Kremlin spokesman Dmitry Peskov clarifies there can be no deadlines for memorandum as "the devil is in the details."

==EUROPE:

BoE: Bank of England policymaker Swati Dhingra says she wanted to make a "categorical statement" about the economy with the vote for a 50bps cut.

Switzerland: Central bank Chairman Martin Schlegel sees "currently no alternative" to USTs, expects inflation to dip below zero in individual months this year, says rates are the main instrument.

BIS: Hyun-Song Shin, who heads the monetary and economics department at the Bank for International Settlements, warns about the growing use of foreign exchange swaps.

EU: European Union member states give initial approval to 150 billion euros defense fund, formal approval expected next week (Bloomberg).

==ASIA:

China: Banks cut depo and lending rates after the central bank cut loan prime rates by 10bps as expected.