EU-RUSSIA: Slovakia Maintains Veto On Latest Sanctions Package
Slovakia continues to act as a brake on EU efforts to impose an 18th round of sanctions on Russia, w...
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SOFR OPTIONS: Morning Update
Morning update, leaning towards upside call buying after earlier selling/mixed flow. Projected rate cut pricing gains slightly vs. morning levels (*) as follows: Jun'25 steady at -0.8bp (0.0bp), Jul'25 at -4.5bp (-4.1bp), Sep'25 at -18.2bp (-17.9bp), Oct'25 at -30.5bp (-30.6bp), Dec'25 at -45.8bp (-45.9bp).
- +4,000 SFRZ5 95.56/95.68/95.81 put flys, 2.5 ref 96.105
- +10,000 0QU5 95.62/95.87 put spds 1.5 ref 96.555
- +8,000 SFRN5 95.87/96.00/96.12 call flys, 1.25-1.5
- +2,500 SFRZ5 96.18/96.50/96.81 call flys, 3.5 vs. 96.12/0.20%
- -4,000 SFRH6 95.62 put 0.5 over 96.25/96.62/97.00 call fly
- +2,500 0QN5 97.62/98.25 call strip, .75
- -7,500 0QZ5 97.25/97.50 call spds 0.5 over 96.37/96.62/96.87 call flys
- -10,000 SFRH6 95.68 puts, 6.5 ref 96.29
- -10,000 0QQ5 96.87 calls, 4.0 vs. 96.565/0.26%
CANADA BOOSTING MILITARY SPENDING TO 2% OF GDP THIS FISCAL YEAR
- CANADA BOOSTING MILITARY SPENDING TO 2% OF GDP THIS FISCAL YEAR
US-CHINA: Hassett-Chip Controls Could Be Relaxed If Rare Earth Deal Reached
Talks between US and Chinese delegations have been underway in London for around two hours, with expectations that the discussions could run well into the evening and even into 10 June. Possibly countering headlines about talks running into tomorrow, Kevin Hassett, director of the National Economic Council, told CNBC that "I expect this to be a short meeting with a big strong handshake," indicating his anticipation of a deal on rare earth exports from China, recently restricted but crucial for US high-tech manufacturing.
- Hassett added that in the event of a deal, "any export controls from the US will be eased, and the rare earths will be released in volume. And then we can go back to negotiating smaller matters," clarifying that he was not referring to "very very high-end Nvidia chips", but "possible export controls on other semiconductors which are also very important" to China.
- As noted in MNI's US Daily Brief earlier, "The US team includes the two principals in Geneva, Treasury Secretary Scott Bessent and USTR Jamieson Greer, but has been expanded to include Commerce Secretary Howard Lutnick, whose Commerce Department has purview over export controls. MNI’s Political Risk Team noted on June 5, shortly after Trump announced his delegation for the talks, that Lutnick's inclusion hinted “that a deal could be made to dial down export controls”.
