W/C January 6, 2025

Jan-03 16:31

Germany, the Netherlands, France, Spain, Belgium, Finland, the ESM, the EU and Italy are due to sell bills next week. We expect issuance to be E37.9bln in first round operations, up from E0.5bln this week.

  • On Monday morning, Germany will sell E2bln of the 6-month Jul 16, 2025 bubill.
  • Also on Monday morning, the Netherlands will issue E1.0-2.0bln of the 3-month Mar 28, 2025 DTC and E1.0-2.0bln of the new 6-month Jun 27, 2025 DTC.
  • On Monday afternoon, France will come to the market to sell up to E7.5bln of the 9/14/25/51-week BTFs: E0.2-0.6bln of the new 9-week Apr 16, 2025 BTF, E3.1-3.5bln of the new 14-week Apr 16, 2025 BTF, E1.2-1.6bln of the 25-week Jul 2, 2025 BTF and E1.4-1.8bln of the new 51-week Dec 31, 2025 BTF.
  • On Tuesday morning, Spain will issue a combined E5.5-6.5bln of the 6-month Jul 4, 2025 letras and the new 12-month Jan 9, 2026 letras.
  • Also on Tuesday morning, Belgium will look to sell E3.8-4.2bln of the 4/6/11-month TCs:  an indicative E1.0bln each of the 4-month May 8, 2025 TC and the new 6-month Jul 10, 2025 TC, and an indicative E2.0bln of the new 11-month Dec 11, 2025 TC.
  • Thirdly on Tuesday, Finland will sell up to a combined E2bln of the 7-month Aug 13, 2025 RFTB and the 10-month Nov 13, 2025 RFTB.
  • Next on Tuesday, the ESM will issue up to E1.1bln of the new 3-month Apr 3, 2025 bills.
  • Finally on Tuesday the EU will sell up to E1.5bln of the 3-month Apr 4, 2025 EU-bill, E1.5bln of the new 6-month Jul 4, 2025 EU-bill and E1.5bln of the new 12-month Jan 9, 2026 EU-bill.
  • On Friday, Italy will issue a new 12-month BOT alongside potentially another existing BOT. Details will be announced on Tuesday January 7.

For more on future auctions see the full MNI Eurozone/UK T-bill auction calendar here.

Historical bullets

FED: US TSY 17W AUCTION: NON-COMP BIDS $600 MLN FROM $64.000 BLN TOTAL

Dec-04 16:15
  • US TSY 17W AUCTION: NON-COMP BIDS $600 MLN FROM $64.000 BLN TOTAL

WHITE HOUSE: Trump Confirms Return Of Navarro To Trade & Manufacturing Role

Dec-04 16:04

In a flurry of announcements on his Truth Social platform, President-elect Donald Trump confirms that Peter Navarro, who served as Director of the Office of Trade and Manufacturing Policy during Trump's first term, will return as Senior Counselor for Trade and Manufacturing for his second. Navarro served a four-month prison term earlier this year for contempt of Congress after ignoring a subpoena from the House committee investigating the 6 January 2021 Capitol riot. There is the prospect that Trump could offer Navarro a pardon on taking office, with Trump saying on election day that "he’s a good man, he was treated very unfairly”. 

  • Trump: "During my First Term, few were more effective or tenacious than Peter in enforcing my two sacred rules, Buy American, Hire American. He helped me renegotiate unfair Trade Deals like NAFTA and the Korea-U.S. Free Trade Agreement (KORUS), and moved every one of my Tariff and Trade actions FAST. [...] His mission will be to help successfully advance and communicate the Trump Manufacturing, Tariff, and Trade Agendas...."
  • Navarro is viewed as one of the most hawkish members of Trump's inner circle with regards to trade, not only towards China but also allies such as Germany.
  • The president-elect also confirms the nomination of Daniel Driscoll as Secretary of the Army. He most recently worked as Senior Advisor to Vice President-Elect JD Vance. Meanwhile, Michael Whatley is set to return as chair of the Republican National Committee alongside Trump's daughter, Lara. A lead negotiator on the Abraham Accords team ,Adam Boehler becomes Special Presidential Envoy for Hostage Affairs, while entrepreneur and commercial astronaut Jared Isaacman heads up NASA. 

EURIBOR OPTIONS: Put spread buyer

Dec-04 15:48

ERG5 97.62/97.50ps 1x2 bought for 0.5 and 0.75 in 10k.