BOC: Macklem: "Material" Change In Outlook Needs "Accumulation Of Evidence"

House Minority Leader Hakeem Jeffries (D-NY) implied to reporters, ahead of a crucial (15:00ET) White House meeting with Senate Minority Leader Chuck Schumer (D-NY), President Donald Trump and Republican leaders, that Democrats will not support the House-passed 'clean' Continuing Resolution, even if Trump and Republicans offer concessions on Affordable Care Act (Obamacare) subsidies.

• Jeffries: “Our position ... is a permanent extension of the Affordable Care Act tax credits. enough with the games that Republicans have been playing.”
• Jeffries added, “Republicans know they don’t have the high ground. They have a weak position… If the government shuts down, it’s because Republicans want to shut the government down.”
• Jeffries left the door open to negotiations, “We are willing to find a bipartisan path forward. It has to help everyday Americans. Not hurt everyday Americans… What we will not do is support a partisan Republican spending bill.”
• White House Press Secretary Karoline Leavitt told Fox News a short time ago, “The leverage is in the president's hands because the overwhelming majority of the American public wants to keep the government open. I mean, it's not even close.”
• Jeffries's comments are consistent with a hardline position from House Democrats throughout the funding process. Any Democrat concession will ultimately have to come from Schumer, whose votes will determine if the government stays open on October 1. If Trump offers any concessions on Obamacare, we expect Schumer to make a deal both sides can tout as a win.

• EUR/USD: $1.1600-05(E2.4bln), $1.1695-00(E1.8bln), $1.1725(E528mln), $1.1775(E715mln), $1.1800(E1.8bln), $1.1825-30(E850mln), $1.1850(E878mln)
• USD/JPY: Y148.00($827mln), Y149.00-15($755mln)
• AUD/USD: $0.6595-00(A$1.3bln)
• NZD/USD: $0.5785(N$1.0bln)

Underlying futures remain higher/near highs as focus turns to US Gov shutdown (Tuesday at midnight if funding deal not reached), curves flatter. Projected rate cut pricing gaining slightly vs. late Friday levels (*): Oct'25 at -22.7bp (-22.4bp), Dec'25 at -41.2bp (-40.5bp), Jan'26 at -50.7bp (-49.9bp), Mar'26 at -60.6bp (-59.9bp).

• +10,000 SFRH6 96.50/96.68/96.87/97.06 call condors, 3.75
• +5,000 SFRZ5 96.56/96.68 call spds 0.75 ref 96.275
• +3,500 SFRZ5 97.50/98.00 call spds .25 ref 96.295
• Update, 26,000 SFRZ5 95.87 puts, cab (huge open interest at 603,823 coming into the session)