[EU's Chief Trade Negotiator to Meet with US Trade Representative in Paris on Tuesday] ⑴ A spokesperson for the European Commission stated on Monday that EU Trade Commissioner Šefčovič will meet with US Trade Representative Greer in Paris on Tuesday, during the G7 summit. This comes after US President Trump announced he would raise EU car import tariffs from 15% to 25%, citing the EU's failure to fully comply with the trade agreement reached with the US last year. ⑵ The EU is currently finalizing relevant legislative negotiations to further reduce tariffs on US goods. Following Trump's statement, the European Commission responded on Friday, stating that it is implementing the US-EU trade agreement according to necessary procedures and will keep the progress updated with the US government. Trump's tariff rhetoric continues to escalate, increasing the risk of transatlantic trade friction. ⑶ Against the backdrop of shipping disruptions in the Strait of Hormuz due to the Iranian conflict, a further escalation of the US-EU trade dispute would put additional pressure on the global automotive and auto parts supply chain. The market is focused on whether Tuesday's meeting in Paris can ease the differences between the two sides.

[Global Government Bond Yields Diverge: US 2-Year Treasuries Lead Most Countries, UK Bonds Follow Closely] Monday's data on major global government bond yields showed significant divergence in monetary policy cycles and geopolitical risk exposure among countries. Looking at the 2-year government bond yield, the US yield was 3.929%, 124.6 basis points higher than Germany (2.683%) and 254 basis points higher than Japan (1.389%). Australia had the highest yield at 4.699%, 77 basis points higher than the US; the UK yielded 4.414%, 48.5 basis points higher than the US. Yields in continental European countries were generally lower than in the US. The 2-year yields in Belgium, France, Italy, the Netherlands, and Spain ranged from 2.7% to 2.9%, 94 to 116 basis points lower than the US. Denmark and Sweden had even lower yields, at 2.444% and 2.416% respectively, 148 and 151 basis points lower than the US. In the 10-year market, the US yield was 4.411%, 133.6 basis points higher than Germany (3.075%) and 190.5 basis points higher than Japan (2.506%). Australia (4.992%) and the UK (4.971%) had the highest 10-year yields, 58 and 56 basis points higher than the US, respectively. Canada (3.568%), France (3.734%), and Italy (3.916%) all had lower 10-year yields than the US, ranging from 49 to 84 basis points lower. Using Germany as a benchmark, Italy (3.916%) was 84.2 basis points higher than Germany, France (3.734%) was 65.9 basis points higher, and the US (4.411%) was 133.6 basis points higher. Japan's yield (2.506%) was 56.9 basis points lower than Germany's, Denmark's (2.930%) was 14.5 basis points lower, and Sweden's (2.881%) was 19.4 basis points lower. Against the backdrop of the ongoing conflict with Iran and market disruptions caused by Trump's tariff rhetoric, the relatively high yields in the US reflect market expectations that the Federal Reserve will maintain its tightening stance, while the lower yields in continental Europe imply concerns about economic growth and expectations of future interest rate cuts. Japan's bottom-ranking yield highlights its unique monetary easing environment.

Global funds were net sellers of Indian stocks worth 80.2 billion rupees in the previous trading day.

Germany believes that the United States faces supply vulnerabilities due to limited potash supply.

The EU and the UK have agreed to begin negotiations on the UK's accession to the EU Innovation Fund.

The Argentine Chamber of Agriculture and Livestock Industry (CIARA-CEC) reported that Argentina's agricultural export revenue fell 1% year-on-year to US$2.495 billion in April.