GILTS: Net Short Setting In Futures On Tuesday

US Vice President JD Vance has claimed that the US decided to pull its bombers from RAF Fairford air base in the UK "out of an abundance of caution" following what some US outlets have reported as a 'new threat' at the base after a 'major incident' in late September, when three 'suspicious vehicles' were spotted near the base, resulting in arrests. 

• Speaking at Joint Base Andrews, Vance said, "What you saw there is the Secretary of War, out of an abundance of caution, trying to protect our guys. We do feel with some confidence that the Iranians are trying to do what the Iranian state has done for 49 years, which is engage in acts of terrorism against the United States and against a lot of other people as well."
• Secretary of State Marco Rubio had sought to downplay the withdrawal earlier, saying "It's not unusual to see movement of assets to different parts of the world..."
• In the UK, the withdrawal of the US bombers has been seen as an indication that the Pentagon does not have faith in Britain's ability to ensure security at the base.
• While developments such as these are not 'market moving', the withdrawal of the B-1 bombers will, as the BBC notes "see the US lose a foothold for the country outside continental Europe." Given the still-tense situation in the Middle East, any disruption to US military logistics or offensive capabilities is a notable shift. 

• US TSY 13W BILL AUCTION: HIGH 4.050%(ALLOT 21.30%)
• US TSY 13W BILL AUCTION: DEALERS TAKE 44.21% OF COMPETITIVES
• US TSY 13W BILL AUCTION: DIRECTS TAKE 7.15% OF COMPETITIVES
• US TSY 13W BILL AUCTION: INDIRECTS TAKE 48.64% OF COMPETITIVES
• US TSY 13W BILL AUCTION: BID/CVR 2.51

• US TSY 26W BILL AUCTION: HIGH 4.165%(ALLOT 40.62%)
• US TSY 26W BILL AUCTION: DEALERS TAKE 26.22% OF COMPETITIVES
• US TSY 26W BILL AUCTION: DIRECTS TAKE 10.56% OF COMPETITIVES
• US TSY 26W BILL AUCTION: INDIRECTS TAKE 63.22% OF COMPETITIVES
• US TSY 26W BILL AUCTION: BID/CVR 2.79