ECB: Villeroy Notes There Is Still Margin For ECB Cuts

• SFRH5 96.06c, traded for half in 4k.
• SFRJ5 95.87/95.81/95.62p ladder, traded for 4 in 2k.
• SFRK5 97.43c, traded for 0.75 in 2k.
• SFRM5 95.93/96.06cs, traded for 1.5 in 7.5k.
• SFRM5 95.68p, traded for 2.5 in 3k.
• SFRU5 95.93^, traded for 37 in 2k and 36.5 in 3.5k.
• 0QH5 95.93/96.06/96.18/96.43c condor, traded 3.5 in 5k.
• 2QU5 96.62/97.00cs, traded 5 in 3k.

• GBP437.500mln had been on offer.
• This leaves GBP16.898bln of the gilt in issue.

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Executive summary:

• The Senate could begin voting this evening on a budget resolution to underpin a $300 billion border and defence reconciliation bill. Should Senate Majority Leader John Thune (R-SD) choose to open voting on the resolution, it would further escalate a showdown between the House and Senate over the optimum strategy for legislating Trump’s agenda.
• President Donald Trump reiterated his commitment to ‘reciprocal tariffs’, confirming that his administration will treat value-added tax (VAT) the same as tariffs.
• The Senate will vote today to confirm Howard Lutnick as Trump’s Secretary of Commerce amid reports that Commerce may have been sidelined from discussions on Trump’s trade policy.
• Talks have concluded in the Saudi capital Riyadh between delegations from the US and Russia in what could prove the first step towards peace talks to end the war in Ukraine.
• Kremlin foreign policy aide Yury Ushakov said a Trump-Putin meeting is unlikely to take place next week.
• Poll of the Day: The top House Democrat super PAC is circulating a memo laying the groundwork for Democrats to hammer Republicans on potential cuts to Medicaid. 

Full article: US Daily Brief