MIDEAST: Trump On Gaza-US Would Develop Strip, But No Troops Needed
US President Donald Trump posts on the Truth Social platform regarding his Gaza comments: "The Gaza Strip would be turned over to the United States by Israel at the conclusion of fighting. The Palestinians, people like Chuck Schumer, would have already been resettled in far safer and more beautiful communities, with new and modern homes, in the region. They would actually have a chance to be happy, safe, and free. The U.S., working with great development teams from all over the World, would slowly and carefully begin the construction of what would become one of the greatest and most spectacular developments of its kind on Earth. No soldiers by the U.S. would be needed! Stability for the region would reign!!!"
- The US president's comments come after senior officials including White House Press Secretary Karoline Leavitt said Trump had not committed to US boots on the ground, and that Palestinians would only be "temporarily relocated". Secretary of State Marco Rubio said that the Palestinians would only leave for an "interim" period during which debris and unexploded ordnance would be removed. Some reports suggested this was an effort to 'walk back' the president's comments.
- Such comments are likely to keep markets on their toes, even if it does not directly affect the situation on the ground in the Levant in the short-to-medium term where attention will be more closely paid to negotiations on the second phase of a ceasefire in Gaza currently taking place in Doha.
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EGB SYNDICATION: Slovenia 30-year: Spread set
- Spread set at MS+128bp (Guidance was MS+140bps area then MS+135bps area)
- Size: EUR Benchmark (MNI expects E1.0-1.5bln)
- Books in excess of E3.2bln (inc E505mln JLM interest)
- Maturity Date: 14 April 2055
- Settlement Date: 14 January 2025 (T+5)
- Joint Bookrunners: Deutsche Bank, Erste Group, Goldman Sachs Bank Europe SE, HSBC, J.P. Morgan (B&D) and OTP Banka Slovenia
- ISIN: SI0002104873
- Timing: Books to close at 11:45GMT / 12:45CET
From market source
US TSY FUTURES: Short Setting Most Prominent On Monday
OI data points to a mix of net long setting (TU), short setting (TY, UXY & WN) & long cover (FV & US) during yesterday’s twist steepening of the futures curve.
- Net exposure was added in curve-wide DV01 equivalent terms, with the biggest net DV01 equivalent positioning swing coming via net short setting in UXY futures.
| 06-Jan-25 | 03-Jan-25 | Daily OI Change | OI DV01 Equivalent Change ($) |
TU | 4,315,149 | 4,303,841 | +11,308 | +437,114 |
FV | 6,175,803 | 6,181,267 | -5,464 | -229,048 |
TY | 4,574,904 | 4,559,292 | +15,612 | +1,002,721 |
UXY | 2,204,157 | 2,183,892 | +20,265 | +1,765,803 |
US | 1,919,525 | 1,923,103 | -3,578 | -443,132 |
WN | 1,771,847 | 1,769,524 | +2,323 | +431,137 |
|
| Total | +40,466 | +2,964,594 |
OUTLOOK: Price Signal Summary - Bear Threat In Gold Remains Present
- On the commodity front, Gold is unchanged. A bear threat remains present despite the latest recovery. The yellow metal traded sharply lower on Dec 18 and the move undermines a recent bull theme. A resumption of weakness would open key support at $2536.9, the Nov 14 low. The first firm support to watch is $2583.6, the Dec 19 low. On the upside, a resumption of gains would instead signal scope for a climb towards resistance at $2726.2, the Dec 12 high.
- In the oil space WTI futures are holding on to the bulk of their recent gains. A stronger reversal to the upside has exposed key short-term resistance at $76.41, the Oct 8 high. On the downside, a reversal lower would expose key support at the 20-day EMA, at $70.78.
