BONDS: EGBs-GILTS CASH CLOSE: Sizeable Bull Steepening On US Tariffs

RRP usage climbs to $135.257B this afternoon from $119.987B Monday. Compares to $58.770B (lowest level since mid-April 2021) on February 14. The number of counterparties falls to 32 from 50 prior.

• "GERMANY'S CONSERVATIVES LEADER MERZ: TO SUBMIT APPLICATION TO CHANGE DEBT BRAKE IN GERMANY" - Reuters
• "SPECIAL FUND TO BE PRESENTED NEXT WEEK"
• "ECONOMY MUST BE BROUGHT BACK ON GROWTH PATH, WTIH CREDIT FINANCED SPECIAL FUND WORTH 500 BLN EUROS"
• "500 BILLION EUROS FUND FOR INFRASTRUCTURE, 100 BLN EUROS OF IT WILL GO TO STATES"
• "GERMANY'S CONSERVATIVES LEADER MERZ: ALL DEFENSE SPENDING ABOVE ONE PERCENT OF GROSS DOMESTIC PRODUCT WOULD BE EXEMPT FROM THE DEBT BRAKE RESTRICTIONS" - Reuters
• EURUSD extending higher following these latest remarks as Germany shows a willingness to bridge the US gap on military assistance.
• Following the earlier break of 1.0533 resistance, EURUSD did briefly trade down to the 1.0500 mark but has since resumed the appreciating trend, printing a fresh session high at 1.0572. A close above 1.0533 would highlight an important technical break and provide the foundation for a stronger bullish short-term theme, opening 1.0630, the Dec 6 high. Above here, 1.0677 will be of note, a retracement point.

• -7,500 TYM5 111-12, sell through 111-12.5 initial post time bid at 1309:01ET, DV01 $474,500. THe 10Y conslipped to 111-10 briefly before rebounding to 111-13 last (+0.0)