BUNDS: A 25 ticks drop in Bund post US Data

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• President Donald Trump has no public events scheduled for a second successive day. Trump is expected to continue outreach to wavering Republican Senators on the 'One Big Beautiful Bill'.
• SEC Commissioner Paul Atkins will testify today to the Senate on Trump’s FY26 budget request.   
• The Trump administration has reportedly circulated a letter to trading partners seeking their best offer by Wednesday.
• Commerce Secretary Howard Lutnick is “very optimistic” about striking a trade deal with India in the coming weeks.
• USTR Jamieson Greer is expected to meet the European Trade Commissioner tomorrow - the same day as Trump’s planned doubling of steel and aluminium tariffs.
• The OECD cut its global growth forecast, citing trade uncertainty.
• Senate Majority Leader John Thune (R-SD) hopes to release his text of the GOP megabill as soon as this week. Senate committees could start rolling out their portions of the bill today.
• The White House is expected to send Congress its first package of rescissions today.
• The so-called ‘TACO Trade’ could be instructive for determining Trump’s foreign policy.
• Pressure has increased on Trump to authorise Russia sanctions after a second round of Ukraine talks saw little progress towards a ceasefire.
• A new US-Iran nuclear accord looks in doubt after Trump appeared to nix a compromise on Tehran’s enrichment programme.
• Poll of the Day: Voters trust Trump but have concerns about current economic conditions. 

Full Article: US DAILY BRIEF

Trading desks reported modest overnight volumes in SOFR & Treasury options, mixed trade leaning slightly towards SOFR puts. Underlying futures firmer, projected rate cut pricing holds steady gaining slightly in longer dates vs. late Monday levels (*) as follows: Jun'25 steady at -1.2bp, Jul'25 at -6.3bp (-6.3bp), Sep'25 at -22.2bp (-20.8bp), Oct'25 at -35.8bp (-34.8bp), Dec'25 at -52.6bp (-51.0bp).

• SOFR Options:
  • 1,800 2QM5 96.37/96.50/96.62 put flys
  • +1,500 SFRZ5 96.50/96.6875/96.75 call fly, 3.0 vs 96.22/0.05%
  • +1,500 0QQ5 95.75/96.00 put spd, 1.5
  • -1,500 SFRZ5 95.62/95.68 put spd, 0.5 vs 96.245/0.05%
  • Block, +5,000 0QM5 96.12/96.37 put spds, 2.0 ref 96.595
  • 2,000 0QM5 96.62/96.75/96.87 call fly, 2.0
  • +10,000 SFRU5 95.625 puts, 1.0
• Treasury Options:
  • +2,500 wk1 Wed TY 110.25 puts, 2
  • 1,150 FVN5 107 puts, 5.5 ref 108-06.25
  • +1,000 wk1 Wed TY 110.5/110.75 2x1 put spd, 1.0 vs 110-26/0.08%
  • +1,000 wk1 TU/wk1 Wed TU 103.87 call spds, 2.5
  • +1,000 wk1 TU/wk1 Wed TU 103.75 call spds, 3.5

• Former Trump trade negotiator Everett Eissenstat discusses the outlook for tariffs -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com