Report published June 3, 2026

RBC European Economics & Rates Strategy Daily – June 3, 2026

RBC Capital Markets · June 3, 2026

RBC provides a global macro update highlighting US tariff proposals, military strikes in the Middle East, and a slowdown in Australian GDP. The report tacticaly recommends going long on UK 10-year inflation break-evens ahead of a Gilt auction.

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Finvaulta summarizes RBC Capital Markets's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.

Key Takeaways

1.The US is proposing new tariffs of at least 10% (up to 12.5%) on imports from 60 countries over forced labor concerns.
2.Geopolitical tensions escalated as the US military launched 'self-defense' strikes on Iran following drone attacks in the Strait of Hormuz.
3.UK 10-year break-evens (BEs) look attractively cheap ahead of the IL35 Gilt auction, presenting a risk/reward opportunity to go long.

Overnight news
Data and events
Gilt market outlook - IL35 auction preview
RBC growth and inflation forecasts
RBC yield forecasts
RBC RV Quadrant

Report data

Oil continues to be the dominant driver of UK FI markets, especially UK BEs...

Metric	Estimate	Context
Brent Crude Price	97.40 USD/bbl	Rising due to Middle East tensions.
Australian GDP	0.3 % q/q	Below consensus expectation of 0.5%.
Proposed US Import Tariff	10-12.5%	Targeting 60 countries for alleged forced labor violations.