EUROZONE T-BILL ISSUANCE: W/C 5 May, 2025

Politico reports that non-governmental advisor Elon Musk is expected to step back from his public-facing duties in President Donald Trump's White House, despite Trump remaining "pleased" with Musk and his Department of Government Efficiency initiative.

• Politico notes: "The transition, the insiders said, is likely to correspond to the end of Musk’s time as a “special government employee,” a special status that temporarily exempts him from some ethics and conflict-of-interest rules. That 130-day period is expected to expire in late May or early June."
• Should Musk's departure come ahead of the 130-day period it could be seen as the Trump administration managing political exposure to Musk's sliding approval rating. A new Marquette Law School survey found: "Approval of how Elon Musk is handling his work in the Department of Government Efficiency (DOGE) stands at 41%, with disapproval at 58%. Musk’s personal favorability is 38%, with 60% unfavorable."
• The report doesn't offer much new information but appears to counter some reporting suggesting that Trump would look to extend Musk's temporary 130-day cap.
• Trump told reporters at the White House this week that his Cabinet secretaries have “gotten a big education” from their experience with DOGE. Trump added: “There will be a point at which the secretaries will be able to do this work [without Musk],” indicating that work to cut the federal workforce will continue.
• Notably, the report comes after a Republican underperformance in a Wisconsin Supreme Court race that was seen as a referendum on Musk's role in the Trump administration. 

• Treasury futures extend session lows - retreating to early overnight levels after Politico headlines announce that Elon Musk will step back from "governing partner" role in the next few weeks. Several new outlets have announced over the last couple days that Musk would be stepping down from DOGE by the end of May.
• Treasuries Jun'25 10Y contract trades 111-18 (-7) vs. 111-15 low, technical support below at 110-26.5 (20-day EMA).
• Curves mildly flatter, off early week highs: 2s10s -.127 at 28.245, 5s30s -0.609 at 59.195.
• Cross asset update: stocks bounce (SPX eminis +26.5 at 5701.00).Bbg US$ index -2.24 at 1270.04.

• EUR/USD: $1.0800(E3.5bln), $1.0850(E1.1bln), $1.0875(E1.6bln), $1.0900(E863mln)
• USD/JPY: Y147.00($1.8bln), Y148.00($1.8bln), Y148.25-35($1.3bln), Y150.00($1.2bln)
• GBP/USD: $1.2840-50(Gbp868mln)
• EUR/JPY: Y165.90(E549mln)
• AUD/USD: $0.6290-00(A$920mln), $0.6320(A$566mln), $0.6400-10(A$1.8bln)
• NZD/USD: $0.5715-20(N$520mln)
• USD/CAD: C$1.4280($660mln), C$1.4370-75($1.2bln)