06:21 AM EST, 01/24/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Friday highlighted:

Markets: United States Treasuries up in Asia as steepening extends, softer after the Bank of Japan policy decision alongside Japanese government bonds. U.S. President Donald Trump's comments trigger rally in yuan and Chinese equities. E-minis zig-zag after S&P closes at record high. USD softer, yen firmer after BoJ. Oil stabilizes.

USTs: Primary dealer holdings rose to a new record high, UST foreign exchange reserves held at the Federal Reserve rose for the second week from long-term low.

U.S.: Trump tells Davos audience he will urge OPEC to lower oil prices and demand lower interest rates, says he knows interest rates better than Federal Reserve Chair Jerome Powell. He wants to "obliterate" U.S. debt; calls the European Union's tech regulation initiatives "a form of taxation". Says he would "rather not have to use" tariffs on China in Fox News interview. WTO chief tells world to "not hyperventilate" but "chill" in light of tariff threats.

==EUROPE:

ECB: Bloomberg survey sees cuts end at 2% in June. 57% see inflation overshooting as a bigger risk than undershooting. The majority expects the European Central Bank to roll out structural operations by Q1 2026.

Italy: Monte Paschi bank offers to buy Mediobanca in an all-share deal.

==ASIA:

Japan: The BoJ raises key rate to 0.50% from 25bps; vote 8:1. Raises 2025 core inflation forecasts, gross domestic product forecast is unchganged.

Japan: December core inflation in line, headline rose more than expected.