EUROZONE T-BILL ISSUANCE: W/C 5 May, 2025
May-02 15:56
Germany, France, Spain, Belgium, the Netherlands, the ESM, the EU and Italy are all due to sell bills next week. We expect issuance to be E33.3bln in first round operations, up from E17.0bln this week.
- On Monday morning, Germany will look to sell E2bln of the 6-month Nov 19, 2025 Bubill.
- On Monday afternoon, France will come to the market with up to a combined E7.3bln of 13/20/28/50-week BTFs: E2.6-3.0bln of the 13-week Aug 6, 2025 BTF; E0.1-0.5bln of the 20-week Sep 24, 2025 BTF; E1.6-2.0bln of the new 28-week Nov 19, 2025 BTF; E1.4-1.8bln of the 50-week Apr 22, 2026 BTF.
- On Tuesday morning, Spain will look to issue the 6-month Nov 7, 2025 letras and the new 12-month May 8, 2026 letras, with the size set to be announced on Monday.
- Also on Tuesday, Belgium will look to sell E2.4-2.8bln of TCs: An indicative E1.0bln of the 3-month Aug 14, 2025 TC; an indicative E0.8bln of the 6-month Nov 13, 2025 TC; an indicative E0.8bln of the 11-month Apr 9, 2026 TC.
- Additionally on Tuesday, the Netherlands will come to the market with E1.0-2.0bln of the 4-month Aug 28, 2025 DTC and E1.0-2.0bln of the new 6-month Oct 30, 2025 DTC.
- Finally on Tuesday, the ESM will look to issue up to E1.1bln of the new 3-month Aug 7, 2025 bills.
- On Wednesday, the EU will look to sell up to E1.0bln of the 3-month Aug 8, 2025 EU-bill, up to E1.5bln of the new 6-month Nov 7, 2025 EU-bill and up to E1.5bln of the new 12-month May 8, 2026 EU-bill.
- To conclude issuance for the week on Friday morning, Italy will come to the market with a new 12-month BOT, potentially alongside another BOT. Details will be announced on Tuesday.
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US: Musk To Step Back From Prominent Government Advisory Role - Politico
Apr-02 15:40
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.
US TSY FUTURES: Treasury Futures Extend Decline on Musk Headline
Apr-02 15:35
- 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.
OPTIONS: Expiries for Apr03 NY cut 1000ET (Source DTCC)
Apr-02 15:34
- 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)
