EU CREDIT HEADLINE: ABB / Legrand

• -5,000 TUZ5 104-15.88, post time bid at 0816:35ET, DV01 $208,000.
• The 2Y contract trades 104-16 last (+.62)

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• At 10:10 ET 15:10 BST, President Donald Trump will deliver remarks to the White House Religious Liberty Commission.
• Treasury Secretary Scott Bessent said Trump's economic policies need more time, following Friday's soft jobs report. Bessent downplayed the impact of Trump’s tariff agenda on US manufacturing jobs.
• Bessent warned that the US would have to refund half of the tariffs it has collected if it loses a case challenging Trump’s emergency declaration at the Supreme Court.
• BRICS countries will meet virtually today to dicuss the impact of Trump's tariffs.
• The already-strained relationship between Washington and Seoul took another hit after hundreds of South Korean workers were swept up in an immigration raid in Georgia.
• A new Pentagon strategy report is expected to put domestic considerations above countering adversaries.
• The implied probability of a government shutdown on October 1 ticked up to roughly 50%.
• Senate Majority Leader John Thune (R-SD) will today take the first step of a 'nuclear option' to advance executive branch nominees.  
• The US and EU appear closer to coordinating new sanctions on Russia, but political obstacles may undermine the process.
• Trump issued a ‘last warning’ to Hamas as Israel initiates a new military phase in Gaza City.
• IAEA Director Rafael Grossi said there is "still time" for a nuclear deal with Iran.
• Poll of the Day: The Trump Administration has declared more emergencies than any of its predecessors.

Full Article: US DAILY BRIEF

Option desks report decent SOFR & Treasury options trade overnight, some chunky SOFR call sales/unwinds and vol structure selling in Treasury options. Underlying futures firmer - upper half of relatively narrow overnight range - but still off last Friday's post-employment data highs. Projected rate cuts adding to late Friday (*) levels: Sep'25 at -28.4bp (-28bp), Oct'25 at -48.2bp (-47.3bp), Dec'25 at -70.6bp (-69.7bp), Jan'26 at -84.7bp (-83.5bp).

• SOFR Options
  • 10,000 SFRV5/SFRZ5 96.50/96.62
  • -8,000 SFRZ5 96.18/96.73 1x2 call spds 3.75
  • Block, 5,000 SFRU5 96.00/96.12 call spds 1.25 over 95.93 puts
  • +4,000 SFRX5 96.37/96.50/96.62 call flys, 2.25
  • +2,000 SFRX5 96.25/96.37/96.62 broken call flys, 0.25
  • +2,000 SFRZ5 96.56/96.68 call spds, 2.0
  • -2,500 SFRH6 96.50/97.00 call spds vs. 96.62/0.25%
  • 4,000 SFRU5 95.75/95.87/96.00 put flys, 2.5 ref 95.99
  • Block, +5,000 SFRZ5 95.87 puts, 0.5
  • 4,100 0QU5/2QU5 97.00 call spds, 1.5 net
  • 2,000 SFRZ5 96.00/96.06/96.25/96.31 call condors, 2.0
  • 2,000 SFRU5 96.00/96.12 call spds vs. 95.93 put, 1.0 net ref 95.99
  • 1,000 SFRV5 96.43/96.68 call spds vs. 0QV5 97.25/97.50 call spd spd
  • over -34,700 (pieces) SFRU5 95.87 calls, 11
  • 2,000 0QZ5 97.25/97.37 call spds, 3.5 vs 97.075/0.10%
• Treasury Options:
  • -10,000 TYV5 112.75/113.25/113.5/114 iron condors (wings x2), 13 net cr
  • 2,500 TYV5 111.5 puts vs. 115.25/115.75 call spds ref 113-12.5
  • -1,250 TYV5 113/114 1x2 call spds, 7
  • -3,000 FVX5 108.75 puts, 8.5
  • 2,300 FVX 109.75 straddles, 107-107.5
  • +1,500 TYX5 113 straddles 148 ref 113-13.5
  • -1,600 TYV5 112/114.75 strangles, 16 ref 113-11.5
  • 1,500 USV5 115/116.5 put spds ref 116-13
  • -1,250 TYV5 112/115 strangles, 16 ref 113-11
  • +2,000 FVV5 110/110.5 1x2 call spds, 0.5