US: White House To Send Congress 'Small Package' Of DOGE Cuts - Politico

US Treasury Secretary Scott Bessent has issued a statement on social media touting "substantive movement" towards trade deals with India, South Korea, and Japan. 

• Bessent: "We are continuing to make substantive movement on negotiations with many of our trading partners. The negotiations with our Asian trading partners are going very well; the negotiations with the Republic of Korea have gone very well; [Vice President JD Vance's] negotiations with India went very well; and I think we've had some very substantial negotiations with our Japanese allies."
• In an interview with CNBC earlier today, Bessent indicated that the Trump administration is working on a standardised template for trade deals, but declined to disclose further details.
• If progress is seen to be made, the template to facilitate further delays to the implementation of 'reciprocal tariffs', scheduled to take effect in July, as comprehensive bilateral trade deals can involve years of negotiations.
• Bloomberg reported earlier that South Korea's Vice Industry Minister Park Sung-taek said Seoul will send a delegation to Washington this week for “working-level talks to follow up on last week’s progress," but agreeing to any package of measures before the June 3 presidential election is “theoretically impossible.” 
• Reuters reported that Japan's top trade negotiator Ryosei Akazawa said Tokyo's position 'has not changed' and Japan will continue to demand the full removal of US tariffs in a second round of negotiations scheduled for this week.

• RES 4: 113-04   76.4% retracement of the Apr 7 - 11 bear leg 
• RES 3: 112-12   61.8% retracement of the Apr 7 - 11 bear leg
• RES 2: 111-25   50.0% retracement of the Apr 7 - 11 bear leg   
• RES 1: 111-24   High Apr 28
• PRICE:‌‌ 111-23+ @ 16:57 BST Apr 28 
• SUP 1: 110-16+/109-08 Low Apr 22 / 11 and the bear trigger 
• SUP 2: 108-26+ 76.4% retracement of the Jan 13 - Apr 7 bull cycle
• SUP 3: 108-21   Low Feb 19
• SUP 4: 108-03+ Low Dec 12 ‘24 and a key support 

Treasury futures are trading closer to their recent highs. Recent gains are considered corrective and resistance to watch is 111-25, 50.0% of the Apr 7 - 11 bear leg sell-off. Clearance of this level would undermine the bearish theme, and open 112.12, the 61.8% retracement point. On the downside, a resumption of weakness would refocus attention on 109-08, the Apr 11 low and the bear trigger. Clearance of this level would resume the downtrend.  

Some sell-side expectations for today's financing estimates are below, from lowest-to-highest marketable borrowing requirement for the current quarter (where stated) - as we note, these expectations are somewhat wide in part due to differing TGA assumptions:

• TD Securities: End-June TGA cash estimate lowered to $650B (from $850B), borrowing estimate ~$300B.
• Wrightson ICAP: $480B market borrowing Apr-Jun, $570 Jul-Sep ($850B end-quarter TGA assumed).
• Deutsche: $507B borrowing requirement in current quarter, $480B next quarter. Cash targets unchanged at $850B.
• Goldman Sachs: $750B borrowing requirement in current quarter assuming $850B TGA; $875B next quarter (also $850B TGA).
• UBS: “don’t expect any change, but it is possible that they might lower their standard cash target from $800-850bn to as low as $500bn”.
• Wells Fargo: Assumes $850B quarter-end TGAs.