EM LATAM CREDIT: Banco Do Brasil: 2Q 2025 Earnings - Negative

Fresh steepening in the US 2s10s curve on the latest headline, now at 61bps for the steepest since May 22. 10s30s also 4bps steeper today at 57.5bps, a fresh multi-year high.

• 2-year yields now down 8bps at 3.86%, but 10-year yields are down 1bp and 30-year yields up 3bps.
• A less politically independent Fed requires a higher risk premium for holding US Treasuries, and is driving the twist steepening of the curve here. 

The New York Times (link) adds some more color to the Powell firing saga, further to the Bloomberg and CBS reports earlier: 

• "The president waved a copy of a draft letter firing Jerome H. Powell at a meeting in the Oval Office with House Republicans...Some advisers to and allies of Mr. Trump insist he’s simply trolling Mr. Powell and hoping to torment the Fed chair but won’t actually follow through with trying to fire him. But the existence of the letter — and Mr. Trump’s interest in discussing it — suggests that the president is engaging in the type of moves that he often does ahead of ultimately making a major decision."

• US TSY 17W BILL AUCTION: HIGH 4.230%(ALLOT 80.28%)
• US TSY 17W BILL AUCTION: DEALERS TAKE 37.74% OF COMPETITIVES
• US TSY 17W BILL AUCTION: DIRECTS TAKE 6.18% OF COMPETITIVES
• US TSY 17W BILL AUCTION: INDIRECTS TAKE 56.08% OF COMPETITIVES
• US TSY 17W BILL AUCTION: BID/CVR 3.02