CROSS ASSET: Tsy Yields Dip As Bessent Says Terming Out of Debt "A Long Way Off"

The gov't of PM Robert Fico faces a vote of no confidence in the National Council as opposition leader Michal Simecka accuses Fico of preparing to take the country out of the European Union. Reuters reports that Fico has "said Slovakia needed to prepare for "all possible crisis situations" which the EU could face in the short term, suggesting even a break-up of the bloc." Simecka told the legislature "This cannot be read in any other way than... what we had warned of: that the government [...] is preparing the ground for leading Slovakia out of the European Union,"

• Fico leads a left-wing nationalist gov't that has bolstered relations with eurosceptic populists such as Hungarian PM Viktor Orban and sought to continue diplomatic and energy trade links with Russia despite EU sanctions in the wake of the full-scale invasion of Ukraine.
• The governing three-party coalition holds a narrow majority in the National Council, with 76 seats compared to 74 for the opposition parties, that are primarily pro-EU liberals and conservatives. The governing coalition is expected to hold, meaning the no-confidence motion will probably fail in a vote this evening/overnight.
• The no-confidence debate is taking place behind closed doors. Fico argued his presentation of a report from the Slovak Information Service required secrecy. Speaker Peter Ziga, who hails from Fico's left-wing nationalist Smer-SD party, acquiesced. Simecka warned of setting a dangerous precedent, calling the decision "a scandal and an incredible shame". 

• Reoffer 93.376 to yield 5.0075%
• Spread set previously 4.25% Sep-39 gilt +4.00bp (Guidance was +4.00/+4.25bps)
• Size: GBP8.5bln (MNI had expected GBP5.0-6.5bln)
• Books closed in excess of GBP119bln (inc JLM interest of £7bn)
• Expected Settlement Date: 22-January-2025 (T+1)
• ISIN: GB00BQC82D08
• Joint Leads: DB (B&D / DM) / JPM / MS / Nomura / RBC CM
• HR 102% vs 4.25% Sep-39 gilt (GB00B3KJDS62). Spot ref: 92.60
• Timing: TOE 11:59GMT . FTT immediately.

From market source / DMO

SONIA FIX - Source: BBG/ICE

• 1M 4.59760 -0.0088
• 3M 4.51750 -0.0069
• 6M 4.44320 -0.0094
• 12M 4.35160 -0.0089