06:14 AM EDT, 06/23/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Monday highlighted:

Markets: United States Treasuries dropped, then stabilized, with 10-year yield up 2bps. The Bund future is also lower. E-minis and Asian stocks are modestly weaker. US dollar gains, EUR hovers around $1.1485. Brent briefly spiked above $81/barrel, then fell back to $78. Gold trades below Friday's close after brief spike.

Fed: San Francisco Federal Reserve Bank President Mary Daly says a rate cut this fall looks more appropriate than in July. Richmond Fed President Tom Barkin says there is no rush to cut rates. President Donald Trump muses about firing Federal Reserve Chair Jerome Powell, "maybe, just maybe, I'll have to change my mind?"

U.S.: Senate has slimmed down some of the provisions in the "big, beautiful bill", vote is expected in the coming days.

Iran: The U.S. struck three main nuclear sites. Trump says "facilities have been completely and totally obliterated," threatens that any retaliation will be met "with force far greater" than what was witnessed so far. Trump floats regime change, closes post with "MIGA!!!". Iran warns that the strikes will have "everlasting consequences," it "reserves all options." Authority detects no signs of radioactive contamination.

Oil/Trade: Secretary of State Marco Rubio calls on China to prevent Iran from closing the Strait of Hormuz.

NATO agrees to a 5% defense spending target by 2035, the language of the draft statement was tweaked to allow an exemption for Spain (Reuters). Trump says the U.S. shouldn't have to meet the target.

==EUROPE:

ECB: Governing Council member Mario Centeno says the European Central Bank needs to provide the economy with "more stimulus."

Italy: Tesoro announced to launch new BTP Short term Aug27 (2.5 billion to 3 billion euros) and new BTPei Aug31 (2.5 billion to 3 billion euros) on Wednesday.

Ratings: Fitch downgrades Flemish Community to AA-/stable, following last week's sovereign downgrade.