SECURITY: Trump-Putin Call May Determine If US Pursues New Russia Sanctions 2/2
May-19 09:52
Bullet continued: The EU will formally adopt a 17th round of Russia sanctions at an EU foreign ministers’ meeting in Brussels on May 20, targeting Russia’s ‘shadow fleet’ and sanctions circumvention. EU Commission President Ursula von der Leyen announced on Friday that a more punitive package targeting Russia’s banking and hydrocarbon sectors is being drafted. A German government spokesperson said Chancellor Friedrich Merz is "working with the US and European partners on new sanctions," per Reuters.
- US Senator Lindsay Graham (R-SC) has a 'veto-proof majority' in the Senate for a package of “hard-hitting primary and secondary sanctions against Russia and actors supporting Russia’s aggression”. Co-sponsor Senator Richard Blumenthal said, “It’s supported by European allies, Ukraine, and nearly 80 Senators, evenly bipartisan.”
- Graham said on April 1: “These sanctions would be imposed if Russia refuses to engage in good faith negotiations for a lasting peace with Ukraine [or engages in new aggression]." Graham notes that in addition to primary/secondary sanctions, "The legislation also imposes a 500 percent tariff on imported goods from countries that buy Russian oil, gas, uranium and other products.”
- Treasury Secretary Scott Bessent indicated to NBC yesterday that the outcome of today’s Trump-Putin call will likely determine if the Senate pursues sanctions: “We will see what happens when both sides get to the table. President Trump has made it very clear that if President Putin does not negotiate in good faith that the United States will not hesitate to up the Russia sanctions along with our European partners,”
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
LOOK AHEAD: Eurozone Timeline of Key Events (Times BST)
Apr-18 05:18
| Date | Time | Country | Event |
| 25-Apr | 0745 | FR | Manufacturing Sentiment |
| 29-Apr | 0700 | DE | GFK Consumer Climate |
| 29-Apr | 0800 | ES | HICP (p) / GDP |
| 29-Apr | 0900 | EU | M3 / Consumer Expectations Survey |
| 29-Apr | 0900 | IT | ISTAT Confidence Indices |
| 29-Apr | 1000 | EU | Consumer Confidence, Industrial Sentiment |
| 30-Apr | 0630 | FR | GDP (p) / Consumer Spending |
| 30-Apr | 0700 | DE | Import/Export Prices / Retail Sales |
| 30-Apr | 0745 | FR | HICP (p) / PPI |
| 30-Apr | 0855 | DE | Unemployment |
| 30-Apr | 0900 | DE | GDP (p) / State level CPI |
| 30-Apr | 0900 | IT | GDP (p) |
| 30-Apr | 1000 | EU | GDP preliminary flash est. |
| 30-Apr | 1000 | IT | HICP (p) |
| 30-Apr | 1100 | IT | PPI |
| 30-Apr | 1300 | DE | HICP (p) |
JGBS: Twist-Steepener Holds Going Into W/E, BoJ Gov Ueda Reiterates Caution
Apr-18 05:16
JGB futures are stronger, +18 compared to settlement levels, sitting near the middle of the range after a choppy session.
- “Governor Kazuo Ueda reiterates his stance that the central bank will carefully monitor if its economic outlook will be realized, accounting for the effects of US tariff measures, without preconception. The BoJ will raise the benchmark rate if the outlook is realized, Ueda says in response to questions in parliament.” (per BBG)
- “Fukoku Mutual Life Insurance Co. plans to invest in Japan's super-long government bonds this fiscal year after their yields skyrocketed. The company aims to increase domestic government bond holdings by ¥30 billion, with gross purchases potentially reaching ¥300-400 billion.” (per BBG)
- Earlier today, Headline CPI for March showed +3.6% y/y versus +3.7% estimate. Core and Core-Core printed +3.2% y/y and +2.9% y/y, respectively, versus estimates of +3.2% and +2.9% and priors +3.0% and +2.6%.
- Cash US tsys are closed today for the Good Friday holiday.
- Cash JGBs have twist-steepened, pivoting at the 20-year, with yields 2bps lower to 5bps higher.
- Swap rates are 2bps lower to 2bps higher, with a steepening bias.
- On Monday, the local calendar will see Tokyo Condominiums for Sale data.
CHINA: Bond Futures Marginally Up Despite Liquidity Injection.
Apr-18 04:02
- China’s bond market reacted very little to a second day of sizeable liquidity injection.
- China’s 10YR bond future is up just +0.03 at 109.04 and remains firmly above all major moving averages. The nearest being the 20-day EMA at 108.61.
- The 2YR bond future is down -0.02 at 102.46; remaining below all major moving averages – the nearest being the 20 day EMA at 102.52.
- The 10YR CGB is marginally lower in yield at 1.64%
