US-RUSSIA: Trump Considering 'Large Scale' Banking Sanctions & Tariffs On Russia

SPX: 6,030.2 (-0.1%); DJIA: 44,609 (+0.1%/+53pts); NDX: 21,453.8 (-0.5%).

Light hawkish reaction in Euribor futures to Chief Economist Lane’s prepared remarks, seemingly on initial headlines covering upside inflation risks.

• Futures were already moving a little lower ahead of the speech’s release.
• ERZ5 is +0.5 ticks at 98.080, down from 98.100 around ~30 minutes ago.
• Overall, Lane’s comments were very much in line with President Lagarde’s press conference last Thursday. He also already referenced the need for policy rates to track a “middle path” earlier this month (Jan 13).
• ECB-dated OIS price ~87bps of easing through year-end, down from ~89bps before the speech was released.

• +2,000 WNH5 120-29, buy through 120-27 post time offer at 0910:43ET, DV01 $380,000. The 30Y Ultra contract trades 121-03 last (+1-12).