EGBS: Only Modestly Off Highs On Potential April Start For Reciprocal Tariffs

• SFIM5 95.75/96.00cs, bought for 6.75 in 24k.
• SFIM5 95.70/96.00cs, bought for 8.75 and 9 in 20.5k.

Jake Sherman at Punchbowl News reports on X that House Speaker Mike Johnson (R-LA) is looking to extend the federal debt limit for the entirety of President-elect Donald Trump's term and will discuss options at a Republican conference meeting today.

• Sherman adds Johnson said the move would be “costly” - meaning democrats would exact a price for their votes, should the extension be moved outside of reconciliation - the mechanism by which the government can pass budget-related legislation along party lines.  
• Johnson said he’s “agnostic” whether the debt limit rides on reconciliation or via regular appropriations where it will need Democrat support. While Republicans are in a strong position to legislate a debt ceiling hike via reconciliation, including it in a major border security/energy/tax package could leave the GOP agenda vulnerable to a rebellion from conservative deficit hawks.  
• Johnson's comments come amid a spat with Democrats after the Speaker yesterday floated tying the debt limit to California wildfire aid. As a lengthy debt limit extension outside of reconciliation will require Democrat support. Johnson's move to attach the debt limit to a supplemental disaster aid could hasten passage of the bill but will certainly draw Democrat criticism.
• Senator Chris Murphy (D-CT) said, in response to reports of the debt limit-aid tie-up: "They need to raise the debt ceiling to pass their massive tax cut for the super wealthy. So the message is: we will only rebuild California if our billionaire and corporate friends get their money. Unreal."

SFIZ5 96.35/97.00cs x3 vs 95.60p x1, bought the cs for -2 in 10k total.