UK: Gov't Recalls Parliament To Vote On Emergency Bill To Protect Steelworks

United States Trade Representative Jamieson Greer has issued a statement on the European Union's retaliatory tariffs on the United States, describing the bloc's trade and economic policies as "out of step with reality".

• Greer: "For years, the European Union has opposed the United States’ efforts to reindustrialize. The EU has rejected attempts under successive U.S. administrations to cooperate effectively on dealing with global excess capacity on steel, aluminum, and other sectors, employing measures that are too little and too late."
• Greer: "If the EU acted as quickly to address global excess capacity as it does to punish the United States, we likely would be in a different situation today. The EU’s punitive action completely disregards the national security imperatives of the United States – and indeed international security – and is yet another indicator that the EU’s trade and economic policies are out of step with reality."
• The statement comes ahead of a meeting with Canadian ministers at the White House this week reported to include discussions on re-negotiating the US-Mexico-Canada trade agreement (USMCA).
• Canadian Finance Minister Dominic LeBlanc told reporters a few moments ago that Canada will "aim to get relief from tariffs" at the meeting but an early review of USMCA is "not on Canada's agenda", per Reuters. LeBlanc added that it is important to identify "offramps" for tariff threats.
• The first such opportunity for negotiations may come this evening when US Secretary of State Marco Rubio arrives in Charlevoix, Canada for a G7 foreign ministers meeting. 

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Two-way SOFR option flow leaning towards low delta put structures since the open. Underlying futures weaker, near morning lows while projected rate cuts through mid-2025 continue to recede vs. early morning levels (*) as follows: Mar'25 at -0.2bp (-1bp), May'25 at -8bp (-9.4bp), Jun'25 at -24.2bp (-26bp), Jul'25 at -35.7bp (-37.5bp). 

• +8,000 SFRU5/SFRZ5 95.37/95.62/95.87 put fly spread, 0.5 net, Sep over
• +7,000 0QU5 97.00/97.50 call spds vs 95.75 puts, 0.25 net call spd over ref 96.465
• +2,000 0QM5 96.93/97.43 4x5 call spds vs 95.81 puts, 7.5 net/call spd over ref 96.45
• +2,000 SFRM5 95.93 straddles 27.0 ref 95.95
• +7,000 SFRM5 95.75/95.87/95.93 put trees, 1.0 ref 95.945
• +4,000 SFRZ6 95.00/95.50/96.00 put trees, 1.5 ref 96.42
• -5,000 2QM5 96.12/96.37 call spds vs.3QJ5 96.12/96.37 call spd flattener 2.0 net
• -5,000 SFRJ5/SFRK5 95.87/95.93 1x2 put spd strip 5.0-4.25 ref 95.94
• +10,000 SFRJ5 95.68 puts, 0.25 ref 95.94
• -2,500 0QZ5 96.50/97.00 call spds vs 95.25 puts, 10.5 net/c spd, 96.43
• -4,000 SFRZ5 95.75/96.25 put spds, 21.0 ref 96.325
• +5,000 SFRM5 95.62/95.81/96.00 put tree vs. 96.06/96.31 call spd, 1 net ref 95.95