EUROZONE ISSUANCE: EGB Supply - W/C 12 May, 2025 (1/2)

United States Trade Representative Greer has stated, in testimony to the House Ways and Means Committee, that President Donald Trump is “open to negotiate with countries that actually want to pursue reciprocal trade.” LIVESTREAM

• Greer notes that he spoke with counterparts from the EU, Canada, and Mexico yesterday. Says there is an “opportunity” for countries to “bring down their tariffs.”
• Greer adds later: "The President has directed that we're negotiating with willing partners, and that's where I get my guidance from."
• Greer notes, "there are no exceptions or exclusions" to the tariff programme, suggesting that the Trump administration sees bilateral trade deals as the primary route to tariff relief.  
• Greer says he has had frequent meetings and conversations with his UK counterparts on "how to move the economic relationship forward". He says that he has expressed his concerns with UK barriers to US agricultural imports, noting that is “very important to us.”
• The hearing is ongoing and could last around four hours, if yesterday’s corresponding Senate hearing is a guide. 

• Total 48,000 SFRM5 96.25/96.87 call spds from 9.0-8.5 ref 96.10 to -.095

The iTraxx EUR main index is on track for another fresh cycle closing high, even with equities off session lows, as tariff pressure continues to be felt in Europe.

• The double top area from October ’23 (89.9bp) protects the next round number of note to the upside (90bp).
• Note that the index hasn’t managed to retest Monday’s intraday high (89.7bp).

Fig. 1: Markit iTraxx Europe Main Index

Source: MNI - Market News/Bloomberg