OIL: ADNOC Enters Dubai Crude Pricing Process for First Time: oilprice.com

• US TSY 42D AUCTION: NON-COMP BIDS $349 MLN FROM $85.000 BLN TOTAL

• EUR/USD: Feb06 $1.0250(E1.5bln), $1.0300(E1.0bln), $1.0315-25(E2.2bln), $1.0350-55(E1.1bln), $1.0390-10(E2.8bln), $1.0430-50(E2.4bln); Feb07 $1.0400(E1.1bln); Feb10 $1.0400(E1.5bln)
• USD/JPY: Feb06 Y153.90($1.4bln); Feb10 Y154.00($1.9bln)
• GBP/USD: Feb06 $1.2455(Gbp1.2bln)
• EUR/GBP: Feb06 Gbp0.8465(E1.1bln)
• USD/CAD: Feb06 C$1.4200($1.8bln); Feb07 C$1.4090-10($1.1bln), C$1.4300-10($1.2bln), C$1.4355-75($2.5bln), C$1.4600($1.7bln); Feb10 C$1.4425($1.2bln)

German press reports that the Federal Court of Justice (BGH) has ruled negative rates charged by various banks in the past were "invalid" and were contrary to "good faith", thereby opening the potential for damage claims against banks that charged negative rates on certain savings deposits and "call money" accounts.

• While the ECB's zero lower bound is no longer a live policy issue, markets have proved particularly interested in claims made against ECB policy in the past (e.g. The German Federal Constitutional Court ruling on the PSPP's validity within the mandate in 2020).
• As such, on any revisit to the zero lower bound in the future, the perception that these claims and rulings could hinder the ECB's transmission mechanism could again become a market focus, and be a feature in the bank's thinking around negative rates.