FED: US TSY 17W AUCTION: NON-COMP BIDS $995 MLN FROM $75.000 BLN TOTAL

"*TRUMP TO ASK TREASURY FOR WAYS TO CUT DIESEL PRICES: POLITICO
*TRUMP TO URGE STATES TO ADDRESS FUEL COSTS: POLITICO" - bbg

https://www.politico.com/news/2026/10/05/trump-diesel-prices-executive-order-01106807 

"Trump plans to tout the executive actions during a campaign stop in Nebraska, where the high diesel costs and the president’s step to increase foreign beef imports ahead of November have riled farmers and ranchers at the peak of harvest season across deep-red and battleground states. The announcement would come after weeks of chaotic messaging on high diesel prices punctuated on Friday by Trump saying he would not impose a diesel export ban after he repeatedly said he was considering the option."

• EUR/USD: Oct07 $1.1300(E2.8bln), $1.1400(E1.7bln); Oct08 $1.1300(E4.2bln), $1.1325(E1.0bln), $1.1500(E4.3bln); Oct09 $1.1250(E1.7bln), $1.1450(E1.2bln), $1.1500(E2.9bln)
• USD/JPY: Oct07 Y155.25-34($1.5bln); Oct08 Y150.00($2.1bln), Y159.00($2.0bln), Y160.00($1.9bln); Oct09 Y155.00($2.0bln)
• GBP/USD: Oct09 $1.3100(Gbp1.1bln)
• AUD/USD: Oct07 $0.6934-40(A$1.0bln); Oct09 $0.6900(A$1.2bln), $0.7100(A$1.7bln)
• USD/CNY: Oct09 Cny6.6910($1.1bln)

French President Emmanuel Macron and German Chancellor Friedrich Merz have signed a joint letter addressed to European Commission President Ursula von der Leyen, urging the Commission to act faster and go further in protecting EU interests against trade threats. The leaders of the two largest EU economies say the Union needs to develop a "new diversification instrument to reduce European dependencies, resolve existing supply chain concentration and prevent emerging concentration risks." Handelsblatt first reported on the joint call for a 'kill switch' earlier on 5 Oct. 

• They also back "an instrument which would give us the ability to counter cases where third countries deliberately seek to undermine the restoration of a level playinf field and fair markey conditions by political or economic means leading to severe and systematic distortions of our internal market." The letter says this instrument should be invoked using qualified majority voting (not unainously) and include measures such as an "immediate cut-off from the internal market".
• The letter says this instrument has to be 'country agnostic', but is viewed as being directed towards China amid a significant widening of its trade surplus with the EU.
• As noted in our Political Risk Week Ahead (MNI POLITICAL RISK ANALYSIS - Week Ahead 5-11 October), on 8 Oct, European Trade Commissioner Maros Sefcovic travels to China for talks with Commerce Minister Wang Wentao. The EU is looking to gain assurances from China regarding the supply of critical minerals, with the moratorium on export restrictions due to expire shortly.