IRAN: Pakistan Sen-Could Say There Has Been Progress Towards US-Iran Dialogue

Warsh asked about maintaining policy independence from Pres Trump says that he doesn't suspect that he was nominated for Chair because he indicated that he would cut rates. "The President, as you might know, much like virtually all presidents I've either known or studied, presidents tend to be for cutting rates. I think the difference is, President Trump expresses it quite publicly."

• On that note, Sen Tillis - the member who threatens to hold up Warsh's nomination, as he refuses to support it until the Department of Justice investigation into the Fed's building project cost overruns is concluded - sounds exasperated with the case ("let's get rid of this investigation") and argues with several large slides that "there were a variety of reasons why this building went over budget. And as a matter of fact, if we put everybody in prison in federal government that had had a budget go over, we'd have to reserve an area roughly the size of Texas for a penal colony because of the way government projects work."
• He reiterates he would support Warsh's nomination if the investigation were dropped. (And asks no questions of Warsh.) 

ERZ6 has now fully unwound Friday’s sharp rally, amid fresh concerns around a stalling of US-Iran ceasefire negotiations. 

• The contract is now 8.0 ticks lower on the session at 97.375, after registering a multi-week high of 97.55 on Friday.
• The back of the whites/front of the reds underperform across the strip.

Yields across the German curve are at session highs, with the 10-year Bund yield up 3bps to 3.01%. Bear flattening is seen on the session, a familiar dynamic in response to Iran war escalation/lack of de-escalation.

Tomorrow’s Eurozone calendar includes plenty more ECB speak and Q4 2025 fiscal data. April flash consumer confidence may also attract interest, but Middle East headlines are likely to dominate. 

Belgium has announced it will be looking to sell the following at its auction next Monday, April 27:

• the 2.85% Oct-34 OLO (ISIN: BE0000360694)
• the 3.10% Jun-35 OLO (ISIN: BE0000363722)
• the 4.35% Jun-56 OLO (ISIN: BE0000367764)