06:15 AM EDT, 03/11/2025 (MT Newswires) -- Commerzbank in its "European Sunrise" note of Tuesday highlighted:

Markets: United States Treasuries extend rally in early Asian session, then reverse some gains. Bund future drops in early session on headlines that German Greens are hopeful on defense deal. E-minis start to recover after hitting new lows in Asia. EUR steady around $1.085. Brent fell below $69.5/barrel.

U.S.: Elon Musk calls for cuts to "entitlement spending." House Freedom Caucus backs stopgap funding bill to avert government shutdown this Saturday.

==EUROPE:

Germany: Greens propose to raise the threshold for defense spending exemption from debt brake to 1.5%, to broaden the definition of defense and to include infrastructure investments in clean energy transition in counter-offer to CDU/CSU and SPD's fiscal plans. Last night's talks end with no official statement. Greens' co-leader Felix Banaszak says there is still one more week, "it would of course be good if there was an overall agreement in the end." The Greens party co-leader Franziska Brantner is "hopeful" of a defense deal this week.

Italy to propose new financial vehicle to mobilise 200 billion euros of private investment for defense and aerospace via European Union and member state guarantees (Bloomberg sources).

EU: European Stability Mechanism's Pierre Gramegna says markets prefer joint EU debt for defense instead of increased debt on a national level.

Eurogroup note says major policy priorities "require significant resources." Eurogroup President Pascal Donohoe says projections show slightly lower growth while the latest news is growth positive. European Commissioner Valdis Dombrovskis says that uncertainty is dragging on investment.

Italy: Tesoro announces to launch new three-year BTP Jun28, and tap BTP Sep33, Oct54 and green Oct31 on Thursday.

==ASIA:

Japan: Q4 gross domestic product is revised down to 2.2% from 2.8% earlier.