BUNDS: /SWAPS: Long End ASW Outperformance On Lack Of Syndication

US President-elect Donald Trump has issued a statement on Truth Social denying a widely circulated report published by the Washington Post this morning claiming that Trump's aides are exploring "tariff plans that would be applied to every country but only cover critical imports". See: US: Trump Aides Exploring More Limited Universal Tariff Plan, WAPO 

• Trump: "The story in the Washington Post, quoting so-called anonymous sources, which don't exist, incorrectly states that my tariff policy will be pared back. That is wrong. The Washington Post knows it's wrong. It's just another example of Fake News."
• Trump offered no new information on his tariff strategy in an interview with Hugh Hewitt this morning but suggested he and  Chinese President Xi Jinping "will probably get along very well."
• Trump told Hewitt: "...their economy is not doing very well right now, and they need us very badly. I believe we will, you know, I had a great relationship until COVID. That was a that was a bridge too far, but I had a great relationship with President Xi."

2NH5 95.30/94.80ps, bought for 1.5 in 5k.

Gilts unwilling to fade the London morning recovery at this stage, even as peers sell off again, leaving yields little changed to 1bp higher across the curve.

• Building $IG slate and Trump’s pushback against media reports pointing to a softer tariff approach helps Tsys away from highs, while Bunds are pressured by German CPI.
• 10-Year gilts 1bp tighter vs. Tsys on the day.
• Meanwhile, UK paper also outperforms Bunds by ~1bp, spread failed to break below 215bp on an earlier test, having not closed below that level since December 9.
• Futures -15 at 92.08, bearish technicals intact. Initial support and resistance 91.64/92.88.
• GBP725mln of medium-term APF sales due from the BoE in ~10 minutes.