EURIBOR OPTIONS: ERM5 97.81/97.87/97.93 Call Fly Lifted

It appears unlikely that there will be a majority in the Bundestag today for the five-point plan to tighten migration laws put forward by opposition conservative Christian Democratic Union (CDU) leader Freidrich Merz. This is after the left-wing nationalist Sahra Wagenknecht Alliance (BSW) said that it would abstain on today's vote on migration law, as well as on the CDU plan for enhancing internal security. 

• There was the prospect that the measures on migration law could get through despite opposition from the minority gov't of Chancellor Olaf Scholz. The CDU (and its Bavarian sister party the Christian Social Union) have the support of the pro-business liberal Free Democrats (FDP) and controversially the far-right Alternative for Germany (AfD). Support from the BSW would have resulted in a majority.
• The prospect of the CDU gaining the backing of the AfD is seen as a threat to the 'firewall' surrounding the right-wing party that has stopped other parties from cooperating with the AfD at the federal or state level.
• Another test comes on Friday 31 Jan, when there is set to be a vote on the 'Influx Limitation Act'. The BSW has said that it will back this measure. With the CDU/CSU, AfD, and FDP all set to support the bill this will ensure a majority.
• With the federal election on 23 Feb, signs of any cooperation between the CDU and AfD will be closely scrutinised for signs of whether the 'firewall' will remain in place post-election. 

• EUR/USD: Jan30 $1.0450-60(E1.0bln); Jan31 $1.0400(E1.7bln), $1.0450(E1.0bln), $1.0500(E1.4bln), $1.0520-30(E2.7bln); Feb03 $1.0400(E1.7bln)
• USD/JPY: Jan31 Y155.00($1.0bln)
• AUD/USD: Jan31 $0.6200-20(A$1.2bln)
• USD/CAD: Jan30 C$1.4490-00($1.2bln); Jan31 C$1.4400-20($1.2bln); Feb03 C$1.4400($1.5bln)

DSTA has announced the following on its issuance calendar for Q1: 

• It confirmed to hold DSL auctions on February 11 and March 25, details tba. That means the potential auction dates on February 25 and March 11 will not be exercised.
• It also confirmed it will sell E4.0-6.0bln of the Jul-35 DSL (ISIN tba) via DDA on March 4.