SPAIN AUCTION PREVIEW: On offer next week

Treasury Secretary Bessent, interviewed on Bloomberg TV: "I think we could be heading into a series of rate cuts here, and could start with 50bps in September"

• "One of the most politicized governors [Kugler] just left the board"
• If data had been accurate, it's possible Fed cuts earlier, we should be 150, 175bps lower on rates by now.
• "We'll see" on how quickly Miran can be confirmed as Fed nominee. Is "hopeful" for September meeting
• "There is no accountability" at the Fed, in reference to renovations project
• Trump is concerned over the foundations at the Fed
• Would not expect Miran to stay on beyond the remainder of Kugler's term

When asked on whether BLS could suspend NFP releases on quality concerns - seems to talk down comments of BLS nominee as being made outside of office, akin to when Bessent called for a Shadow Fed chair.

• We're concerned on integrity of data, what we want is "good" data. Antoni is "well qualified" as BLS chief, and was there through the interview process.

2s10s bull steepens by ~1bp after Tsy Secretary Bessent reaffirms his idea of a 50bp catch-up rate cut in September, while suggesting that could represent the start of a “series of rate cuts”. 

• FOMC-dated OIS fairly stable around 62bp of cuts through year-end, while SFRZ6 rallies by 1.5bp.

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CNN reports that the high-profile 15 August meeting between US President Donald Trump and Russian President Vladimir Putin will take place at Joint Base Elmendorf-Richardson in Anchorage, Alaska. 

• In preparation for Friday’s meeting, Secretary of State Marco Rubio spoke with Russian Foreign Minister Sergey Lavrov on 12 August. “Both sides confirmed their commitment to ensure a successful event,” per a State Department readout.
• At 09:00 ET 14:00 BST, Trump will hold an emergency call with Ukrainian President Volodymyr Zelenskyy and European leaders to discuss the Ukraine war and strategy for the Putin meeting. Zelenskyy, NATO Secretary General Mark Rutte, and several European leaders will dial into the White House from Germany.