EU REAL ESTATE: London & Quadrant: Fitch cut to A- (LONQUA; A3/BBB+/A-)

MEF has announced a buyback transaction for Wednesday, September 17 via the Bank of Italy. A maximum of E5bln will be bought back.

The bonds subject to the buyback are:

• The 3.50% Jan-26 BTP (ISIN: IT0005514473)
• The 4.50% Mar-26 BTP (ISIN: IT0004644735)
• The 0% Apr-26 BTP (ISIN: IT0005437147)
• The 0.50% Apr-26 CCTeu (ISIN: IT0005428617)
• The 1.60% Jun-26 BTP (ISIN: IT0005170839)
• The 0% Aug-26 BTP (ISIN: IT0005454241)

"The Specialists in Government bonds will be allowed to submit up to five offers for each bond that MEF will buyback. Each offer shall be sent to the Bank of Italy by 11 a.m. of the auction day,"

MNI London: China’s top trade negotiator, Li Chenggang, has described two days of meetings with US Treasury Secretary Scott Bessent and USTR Jamieson Greer on issues of ‘common concern’ as “in-depth, candid, and constructive.”

• Li said, per Reuters, that “both sides acknowledged stable trade ties is significant,” adding that while “frictions are normal”, it is “important to respect each other's core concerns.”
• Li confirms earlier comments from Bessent, saying a “framework agreement” has been reached regarding China’s divestment from the social media platform TikTok, a central focus of the talks.
• Li says, the sides will, “keep close communication, engage in consultation over detail of outcome documents.” Adds that the two sides will “jointly guide companies to have a good follow-up.” Li said China the TikTok agreement was "based on our assessment and judgement… the consensus is in mutual interests."
• The Wall Street Journal notes, “China, which had until now shown little appetite for a deal on the wildly popular app, likely conceded to the agreement to keep alive Beijing’s ambition for President Trump to visit China.”
• More sharply, Li claimed that the US “continued sanctions on Chinese entities” following previous rounds of talks. Alleges the US “generalise national security”, in a way that constitutes “unilateral bullying”.
• Li said China “will not sacrifice interests of firms in order to reach a deal,” adding that, “China firmly safeguards Chinese firms' legitimate rights and interests”. Li adds the US "expressed willingness to work with China in reducing investment barriers."

• US TSY 26W BILL AUCTION: HIGH 3.715%(ALLOT 13.53%)
• US TSY 26W BILL AUCTION: DEALERS TAKE 26.13% OF COMPETITIVES
• US TSY 26W BILL AUCTION: DIRECTS TAKE 6.89% OF COMPETITIVES
• US TSY 26W BILL AUCTION: INDIRECTS TAKE 66.98% OF COMPETITIVES
• US TSY 26W BILL AUCTION: BID/CVR 3.09