NETHERLANDS: ANP-D66 Wins Election, Likely To Lead Coalition Talks

Oct-31 12:10

ANP reports that the liberal progressive Democrats 66 (D66) have won the 29 October general election. As of last night, D66 led the far-right Party for Freedom (PVV) by 15k votes. NOS: "Although not all votes have been counted yet, the news agency says Rob Jetten's party can no longer be overtaken by the PVV. The news agency bases its findings on an analysis of the municipal results. Only the municipality of Venray has not yet announced its results. This will happen later today..."

  • Dutch voters abroad's ~90k ballots also need to be counted. In the 2023 election, D66 won 10.5% of voters abroad to the PVV's 6.3%, despite the election marking a high-water mark for the PVV. With the PVV losing support in 2025 and D66 on course to win a record number of seats, ANP will have judged the D66 lead insurmountable.
  • The identity of the first-placed party is important for coalition talks. Historically, the largest party is offered the first opportunity to appoint the 'scout' who sounds out other parties on starting the negotiating process.
  • After sparking the collapse of the Schoof gov't, and due to its hardline views, the other major parties said pre-election that they are not willing to work with the PVV.
  • For D66, the path to gov't could prove smoother. There is the mathematical prospect of a four-party coalition gov't across the broad political centre.
  • Holding his first cabinet meeting since the 29 October general election, PM Dick Schoof says that he does not expect a new gov't to be in place by Christmas. 

Historical bullets

GILT PAOF RESULTS: GBP118.525mln of the 1.125% Sep-35 Linker sold.

Oct-01 12:02
  • GBP400.0mln had been available.
  • This leaves GBP12.776bln of the linker in issue.

EU-RUSSIA: More Leaders Support Ukraine 'Reparations Loan', But Obstacles Remain

Oct-01 11:44

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A growing number of EU leaders are voicing their support for mooted EU plans that could see EUR140bln of frozen Russian assets held in the Union utilised as a zero-interest "reparations loan" for Kyiv. The loan would then only have to be repaid once Russia has, in turn, repaid Ukraine for war damage. European Commission President Ursula von der Leyen said in late September that “We will strengthen our own defence industry by ensuring that part of the loan is used for procurement in Europe and with Europe.”

  • In a notable boost for the prospect of the reparations loan, German Chancellor Friedrich Merz backed the idea in an FT op-ed. At today's informal meeting of EU leaders in Copenhagen, a number of EU leaders have backed the idea. Latvian PM Evika Silina said, “We have long called for using frozen Russian assets to aid Ukraine.” Finnish PM Petteri Orpo called the plan "a very good idea", while Estonian PM Kristen Michal said the frozen assets should be utilised "as much as possible". Dutch PM Dick Schoof says the proposal "should seriously be considered, as long as risks are covered". 

US TSY FUTURES: BLOCKS: Dec'25 5Y & 10Y

Oct-01 11:41

Both appear to be buys & crossed at same time: 0720:00ET

  • +4,800 FVZ5 109-08.25, buy through 109-08 post time offer, DV01 $210,600
  • +3,000 TYZ5 112-19, buy through 112-18.5 post time offer, DV01 $203,100