BOJ: Ueda Re-iterates Readiness To Use OMOs To Respond To Rates Volatility
Some headlines crossing from BOJ Governor Ueda on Reuters, speaking at the G10: * "BANK OF JAPAN GO...
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EURIBOR: OI Data Suggests Net Short Cover Dominated On Monday
OI data suggests net short cover dominated in the Euribor strip on Monday, though pockets of indicative net long setting were seen in places. Euribor futures settled +0.5 to +2.5 ticks through the blues yesterday. Risk-off trade was evident across global markets following Chinese tech firm DeepSeek's AI advancements weighing on U.S. tech megacaps.
- The largest OI swings were seen in Z5 (+6.7k) and H6 (-10.7k) contracts.
- The Whites saw a small net OI swing of -1.7k, dwarfed by Friday’s -45.8k move amidst the stronger-than-expected Eurozone January flash PMIs.
| 27/01/2025 | 24/01/2025 | Daily OI Change | Daily OI Change In Packs | ||
| ERH5 | 598,190 | 593,928 | +4,262 | Whites | -1,691 |
| ERM5 | 689,402 | 698,586 | -9,184 | Reds | -14,762 |
| ERU5 | 521,996 | 525,511 | -3,515 | Greens | -3,063 |
| ERZ5 | 658,865 | 652,119 | +6,746 | Blues | -6,009 |
| ERH6 | 400,952 | 411,606 | -10,654 | ||
| ERM6 | 343,113 | 345,656 | -2,543 | ||
| ERU6 | 271,315 | 273,805 | -2,490 | ||
| ERZ6 | 294,390 | 293,465 | +925 | ||
| ERH7 | 160,137 | 161,773 | -1,636 | ||
| ERM7 | 127,715 | 129,372 | -1,657 | ||
| ERU7 | 98,834 | 98,666 | +168 | ||
| ERZ7 | 130,607 | 130,545 | +62 | ||
| ERH8 | 51,536 | 52,696 | -1,160 | ||
| ERM8 | 40,765 | 41,842 | -1,077 | ||
| ERU8 | 25,410 | 26,504 | -1,094 | ||
| ERZ8 | 44,465 | 47,143 | -2,678 |
EGB OPTIONS: Schatz Upside
DUJ5 107 calls, bought for 10.5 in +5k
US: Democrats Vow To Fight Trump's Federal Spending Freeze
Senate Minority Leader Chuck Schumer (D-NY) has pledged to fight a federal spending freeze requested by the White House Office of Management and Budget that is set to go into effect at 17:00 ET 22:00 GMT today.
- Acting OMB director, Mattew Vaeth, issued a memo yesterday ordering federal agencies to “temporarily pause all activities related to obligations or disbursement of all Federal financial assistance,” while they carry out a review of federal spending by February 10.
- The order could impact trillions of dollars of federal financial assistance, halt foreign aid, and freeze implementation of Biden-era legislation like the Inflation Reduction Act and the bipartisan infrastructure bill.
- Schumer said: "Head of state attorneys general association are going to court right away on the order... Trump does not have authority to ignore law, will fight order."
- The directive raises constitutional questions about the OMB's role in blocking Congressionally authorised spending, an issue raised by Democrats during the nomination hearing for Trump's OMB director Russell Vought, and signals Trump's willingness to stretch executive authority to the limit in searching for cuts to federal spending.
- Senator Patty Murray (D-WA), the top Democrat appropriator in the Senate, said in a joint statement with her House counterpart: "The scope of what you are ordering is breathtaking, unprecedented, and will have devastating consequences across the country.”
- Murray added that she will ask the Senate Budget Committee to put Vought's nomination on hold in light of the order.
