EURIBOR: Net Long Setting Dominated On Tuesday

Underlying futures have scaled off recent move to session highs (TYH5 109-03.5 last vs. 109-15.5 high) after positive US/Mexico tariff negotiations spur on month delay in action.

• +30,000 SFRJ5 96.12/96.37/96.50/96.75 call condors, 1.25
• +3,000 2QU5 96.62/97.00 call spds +6.75/3K (9607
• +5,000 0QZ5 96.25/96.75/97.25/97.75 call condors, 11.5 ref 96.08

Bund and Gilt futures fall away from session highs alongside USTs, with risk assets buoyed by the latest tariff agreement between the US and Mexico. Bund futures now +58 ticks at 133.10, down from a high of 133.58. 

• 10-year BTP/Bund tightens ~1.5bps back to 111bps, though remains almost 2bps wider today.
• OAT/Bund now 2bps tighter today at 72bps. PM Bayrou has forced his 2025 budget through the National Assembly using Art. 49.3 – in line with expectations.
• The left-wing France Unbowed party has confirmed that it will file a censure motion against the Government, but this is expected to fail given the lack of support from the Socialists (as reported earlier).

-15,000 USH5/USJ5 108 puts, 14 -- April sold over while curves pare flattening following Mexican tariff negotiation headlines that see Tsys reversing move to recent session highs.