EM CEEMEA CREDIT: SOAF: more headlines on budget

• Flattener post at 1026:00ET, appr DV01 $410,000
  • -10,200 TUM5 103-15.12 post time bid vs.
  • +6,400 TYM5 111-11, buy through 111-10.5 post time offer 

13:30 ET 18:30 GMT: US President Donald Trump is set to announce a USD$100 billion investment, over four years, by TSMC in the United States. 

• The Wall Street Journal reports: "The investment would be used to build out cutting-edge chip-making facilities. Such an expansion would advance a long-pursued U.S. goal to regrow the domestic semiconductor industry after manufacturing fled largely to Asian countries in recent decades."
• The Taiwan-based company, the world's largest contract chip maker, agreed to build a semiconductor factory in Arizona in 2020. The deal, struck with the Biden administration, expanded into a pledge for a total investment of USD$65 billion.
• In November 2024, one of the final Biden administration awards from the USD$39 billion 2022 Chips and Science Act issued grants of up to USD$6 billion to TSMC to boost chip manufacturing in the US.  
• Former President Joe Biden said, at the time, the agreement “demonstrates how we are ensuring that the progress made to date will continue to unfold in the coming years, benefiting communities all across the country,”
• Separately, the White House issued a statement touting "more big wins" for Trump, including a "$6 billion plan" from Honda to "expand its U.S.-based manufacturing" and "results" from border security initiatives.

• Trading desks reporting some chunky flow in the lead up to the ISM-data tied bounce in longer dated futures.
  • -40,000 0QM5 96.37/97.00 call spds 16.0 to 15.0 over 0QM 95.37/95.62 put spds
  • +5,000 SFRZ5 96.25/96.75 call spds
  • +15,000 0QM5/0QU5 97.50 call spds, 4.0