US: Republicans Believe Trump Is Striking Right Balance On Gaza War

Sep-19 17:23

Global Affairs reports, from a Chicago Council survey, that Republicans believe the Trump administration is striking the right balance in its handling of the Gaza war.

  • The report notes, “Despite cutting billions of dollars in foreign assistance and pulling back from several international organizations under the auspices of his “America First” agenda, Trump has bolstered US military, economic, and diplomatic support for Israel since returning to the Oval Office.
  • “In response, Democrats and Independents have grown more convinced over the past year that the United States is supporting Israel too much …  Republicans, meanwhile, are now more likely to say the United States is striking the right balance in its support for Israel (47%, up from 23%)—a major shift from 2024…”
  • Global Affairs concludes, “Republican attitudes may signal endorsement for the Trump administration’s increase in arms sales and diplomatic support for Israel over the last few months. However, a small share of Republicans still considers US support insufficient (14%).” 

Figure 1: Thinking about the Israel-Gaza war, do you think the United States is: (%) 

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Source: Chicago Council Surveys

Historical bullets

US: FED Reverse Repo Operation

Aug-20 17:21

RRP usage rebounds to $34.999B this afternoon from $22.344B yesterday - lowest since April 5, 2021. Total number of counterparties at 29. This week's retreat compares this year's high usage of $460.731B on June 30.

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OPTIONS: Put Condors Bought Across Euribor, Bunds

Aug-20 17:13

Wednesday's Europe rates/bond options flow included:

  • RXU5/RXV5 129.5c spread, bought the Oct for 20.5 in 5k
  • RXV5 127.5/126.5/125.5/123p condor vs 130/131.5 cs, bought the Condor for 2 and 3 in 10k
  • ERH6 97.9375/97.8125/97.6875/97.5625p condor, bought for half in 7.5k
  • 0RX5 98.25/98.375cs, bought for 2 in 4k
  • SFIH6 95.50/60/70/80c condor, bought for 1.5 in 3k

US TSYS/SUPPLY: Review 20Y Bond Auction: In-Line

Aug-20 17:04

Treasury futures hold gains (TYU5 111-30.5 +6) little reaction after in-line $16B 20Y Bond auction (912810UN6), drawing a high yield of 4.876% vs 4.877% When-Issued yield at the cutoff; 2.54x bid-to-cover vs. 2.79x prior.

  • Peripheral stats: indirect take-up retreats to 60.64% vs. 67.4% prior; direct bidder take-up rises to 26.47% from 21.9% prior; primary dealer take-up of 12.88% vs. 10.72% prior.