06:21 AM EDT, 05/27/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Tuesday highlighted:

Markets: Bund future extends gains in Asia, United States Treasury futures open higher, 30-year Japanese government bond yields plunge 16bps. Asian equities are mostly softer, e-minis consolidate. The US dollar bounces, oil trades lower.

Trade: European Trade Commissioner Maros Sefcovic says he had "good calls" with U.S. Commerce Secretary Howard Lutnick and U.S. Trade Representative Jamieson Greer. Italian Prime Minister Giorgia Meloni had call with President Donald Trump on Friday and other EU countries also push for swift trade deal (FT).

NATO: Secretary General Mark Rutte assumes "we will agree on a higher defense spending target of in total 5%" at June summit.

Russia-Ukraine war: Kremlin spokesman Dmitry Peskov says German PM Friedrich Merz's approval of Ukrainian long-range missile strikes on Russia is "pretty dangerous decision." SPD's Ralf Stegner calls the step "not helpful."

==EUROPE:

U.K.: The United Kingdom Debt Management Office (DMO) is shifting focus to short-term issuance amid falling investor demand. "There has been an important shift in the relative proportions this year" away from long gilts and towards short-dated debt (FT quotes DMO Chief Jessica Pulay).

EU plans sweeping stress test of non-banks, likely raising concerns among hedge funds and private credit groups (FT).

Italy: Treasury announces to tap bonds BTP 2.95% Jun30 (up to 3.25 billion euros), BTP 3.6% Oct35 (up to 3.5 billion euros) and launch new CCTeu Apr34 (up to 3.5 billion euros) on Thursday.

The Netherlands: Dutch pension fund PME warns U.S. money managers it's reviewing investments that have abandoned basic principles of stewardship.

==ASIA:

Japan: The ministry of finance is considers trimming issuance of ultralong bonds after yields rose to record highs (Reuters sources).

Japan: Bank of Japan Governor Kazuo Ueda says the degree of monetary easing will be adjusted if the economy improves as expected.