CHILE: Additional Analyst Views See Next BCCh Cut in December

Secured rates were steady Friday, with SOFR remaining at 4.35%. 

• Rates are expected to print the same or perhaps slightly lower Monday. However pressure could pick up later in the week on Treasury auction settlements. These include $55B in net cash raised by bills on Tuesday and a further $42B on Thursday, followed by $35B in coupon settlements Friday.
• The  effective Fed funds rate remains steady at 4.33%.

REPO REFERENCE RATES (rate, change from prev. day, volume):
* Secured Overnight Financing Rate (SOFR): 4.35%, no change, $2817B
* Broad General Collateral Rate (BGCR): 4.33%, no change, $1169B
* Tri-Party General Collateral Rate (TGCR): 4.33%, no change, $1139B

New York Fed EFFR for prior session (rate, chg from prev day):
* Daily Effective Fed Funds Rate: 4.33%, no change, volume:  $115B
* Daily Overnight Bank Funding Rate: 4.33%, no change, volume:  $262B

US President Donald Trump’s White House press conference, announcing expanded federal law enforcement in Washington, DC, is underway. LIVESTREAM

• As reported earlier, Trump has invoked the 'Homerule Act' to place the DC police department under direct federal control. He also announces the deployment of the National Guard to Washington DC to “reestablish law, order, and public safety.”
• Trump is likely to take questions from reporters at the conclusion of the law enforcement portion of his press conference. There will be considerable market focus on any comments related to the August 15 summit in Alaska with Russian President Vladimir Putin.
• Trump may also address questions on a pending US-China tariff and export control pause that will expire tomorrow without Trump's endorsement of an additional 90-day pause.   

Euribor futures continue to inch lower on weak volumes. Today’s headline and regional data flow has been light, with weakness over the past five sessions seemingly a gradual reassessment of market’s ECB terminal rate expectations. Although the median analyst still sees one more ECB rate cut this year, a solid minority see rates on hold at 2.00% going forward and this view is slowly bleeding into market pricing.

• ERH6 is -1.5 ticks at 98.110. The August 1 low (i.e. pre the US labour market report) at 98.095 provides initial support.
• Weakness in EUR STIRs is in turn dragging Schatz futures to session lows. DUU5 is -2.5 ticks at 107.025, with key support and the bear trigger defined at 107.010, the Jul 25 low.   
• Tomorrow’s regional calendar includes the German August ZEW survey. Meanwhile, spillover form the UK labour market report will also be eyed in the morning.