TARIFFS: Bessent-'Several Large Trade Deals In Coming Weeks'

Additional detail on recent comment reported by newswires from President Donald Trump on China: “[We’re] going to have a fair deal with China. It's going to be fair.”

• Trump's remarks, delivered to reporters in an ad hoc gaggle at the White House, track relatively closely with recent remarks but may be read more dovishly considering the conciliatory tone shift from Treasury Secretary Scott Bessent yesterday and today at IMF events.
• Asked by a reporter, “are you going to be talking to [China] actively?” Trump appears to respond in the affirmative, saying: “actively… everything’s active. Everybody wants to be a part of what we’re doing.”
• While not a full confirmation, Trump's comments could suggest that high-level trade talks with China could get underway shortly, after a weeks-long standoff.
• Charles Gasparino at Fox Business cautioned a short time ago: "CEOs who deal with the Chinese government say don’t count on [Chinese President Xi Jinping] jumping at the first offer of a trade truce from Trump & Co. They believe Xi will play a long game..."
• Trump adds: “[China] know they can’t get away with it any longer but they’re still going to do fine.” 
• Trump digresses into talking about tariffs replacing income tax: “[In 1913] We had no income tax and we were the wealthiest country… We’re going to be able to substantially lower income tax when this is finished”

MEF has announced it will be looking to sell the following at its auction next Tuesday, April 29:

• E3.0-3.5bln of the 2.95% Jul-30 BTP (ISIN: IT0005637399)
• E3.5-4.0bln of the new 3.60% Oct-35 BTP (ISIN tba)
• E1.5-2.0bln of the 1.10% Apr-33 CCTeu (ISIN: IT0005620460)

• US TSY 2Y FRN AUCTION: HIGH MARGIN 0.160%; ALLOTMENT 10.22%
• US TSY 2Y FRN AUCTION: DEALERS TAKE 49.56% OF COMPETITIVES
• US TSY 2Y FRN AUCTION: DIRECTS TAKE 1.83% OF COMPETITIVES
• US TSY 2Y FRN AUCTION: INDIRECTS TAKE 48.61% OF COMPETITIVES
• US TSY 2Y FRN AUCTION: BID/CVR 2.69