The S&P 500 rebounded post the Memorial Day holiday as markets priced in President Trump’s abrupt U-turn on EU tariff threats. Trump walked back his June 1, 50% EU tariff threat to July 9 after a Sunday call with European Commission President Ursula von der Leyen, who agreed to expedite negotiations. Elsewhere, a rally in Japanese bonds triggered buying in US Treasuries as Japanese officials initiated steps to stabilize the JGB market. 40yr JGB yields plunged 25bps, dragging global bond yields lower and weakening the yen by a percent. Japan’s Ministry of Finance (MOF) triggered the move with a rare Monday evening questionnaire that was sent to primary dealers and institutional investors.