| Want the lowdown on what's moving European markets in your inbox every morning? Sign up here. Good morning. More lockdown easing in the U.K., fierce debates in Europe and U.S. trade tensions return. Here's what's moving markets. Zoos and Schools The latest lockdown easing plans in the U.K. will mean that zoos and drive-in cinemas will be able to join non-essential shops in being able to reopen on Monday, though the government backed down on a plan to let all primary school reopen completely before the summer break in mid-July. U.S. coronavirus cases rose at the slowest daily rate since March, offering some hope as New Jersey lifted its stay-at-home order and began easing restrictions. Developments are less optimistic in France, where prosecutors are looking into complaints about the handling of the epidemic, and in Germany, where one rebel state has shelved its social distancing rules ahead of the rest of the country. And in India, Delhi is being overwhelmed by cases after its lockdown was eased. European Debates Germany believes a deal can get done quickly as the European Union works to address any reservations to its 750-billion-euro coronavirus rescue package amid stiff opposition to elements of the plan from budget hardliners. Demand for the debt governments is selling is showing no sign of letting up, with Ireland on Tuesday racking up record demand despite there being a slew of countries coming to market. At the European Central Bank, the debate has started to focus more on the specter of deflation, with more battles likely ahead over the need for any further stimulus. Also lurking in the background is Brexit, with the U.K. government reiterating its aversion to delaying talks again, saying such a move would be "crazy." Tensions Transatlantic trade tensions are also rising, with EU trade chief Phil Hogan saying Washington has "stepped back" from talks with Europe and that it appears unlikely anything will get done until after the November election. Meanwhile, President Donald Trump alleged on Twitter that an elderly protester injured by police last week was a "provocateur," while Senate Republicans said they are working on police legislation amid the unrest, following on from the Democrats outlining plans earlier this week. The Rally Stocks have faltered a little this week but there still seems to be widespread optimism that the historic rally has room to go, in spite of warnings that it may have got a little ahead of itself. Retail investors snapping up underperformers may well be driving the rally and there may be plenty of signs that a reversal is on the cards, but even the so-called smart money is starting to follow suit and snap up equities while banks tell rich clients to shun emerging markets and allocate to U.S. stocks. And it's not just stocks. This rally has demonstrated the resilience of cross-asset bulls, with credit and funding markets getting in on the act too. Coming Up… Stocks in Asia were mixed but European and U.S. futures are pointing higher as the market awaits the Federal Reserve's latest policy decision, due after Europe's close. The central bank's focus begins to shift its target of full employment with a greater focus on inequality in the economy. Crude oil slipped after a report indicating a surprise rise in U.S. inventories. Chinese factory deflation deepened, French industrial production data is due and a slew of European Central Bank policymakers are also due to speak, while Spanish fast-fashion giant Inditex SA tops the earnings agenda. What We've Been Reading This is what's caught our eye over the past 24 hours. And finally, here's what Cormac Mullen is interested in this morning Treasury bulls might have the weight of the mighty Federal Reserve behind them but they will no doubt welcome some additional potential buying support in the form of international investors. Currency-hedged benchmark Treasury yields for European and Japanese investors have climbed back above zero after the guts of two years in negative territory, as noted by my colleague Liz Capo McCormick. While not likely to backstop any new marketing campaigns, the hedged 10-year yield for yen investors has surged to 0.2% from a March low of minus 1.8%, while the euro equivalent was about 0.1% Monday from its 2020 low of minus 1.3%. That's enough to spark at least some interest in Treasuries from institutional investors, particularly with the debate on potential Fed yield-curve control measures raging.The central bank is unlikely to signal any new moves at its Wednesday meeting, though many economists expect they could adopt such a policy — buying specific bonds to target yields of certain maturities — in September. Treasuries have sold off this month, with the benchmark yield rising to over 0.9% after hitting its year-to-date intraday low just above 0.3% in March.  Cormac Mullen is a cross-asset reporter and editor for Bloomberg News in Tokyo. Like Bloomberg's Five Things? Subscribe for unlimited access to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. | 
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