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BONDS

EGBs-GILTS: Short End Underperforming Pre-BoE

USD

Pares gains against all G10s

CZECHIA

CNB Expected To Hike By Another 25bps Today

US TSY OPTIONS

Outright put buyer

EQUITIES

Estoxx futures edge towards session high

EQUITY TECHS

E-MINI S&P (U1): Modest Fade in Prices

OPTIONS
OPTIONS: As has been the case for much of the week, currency hedging volumes sit
lower than average for this time of day with EUR/USD, USD/CNY and AUD/USD
markets particularly quiet. This isn't the case for USD/JPY, EUR/GBP and NZD/USD
however, which are more active Wednesday.
-Implied vols generally fell Tuesday, but have bounced early Wednesday, with
USD/CHF, USD/RUB and USD/KRW short-end tenors on the rise. 
-Since the unchanged RBNZ rate decision overnight, NZD/USD calls have been
better bought, with close to $2 in call notional trading for every $1 in puts.
Strikes at $0.6450, $0.6375 and $0.6350 have garnered the most focus. Volatility
hedges have also been popular, with $0.6324 and $0.6395 straddles crossing
following the decision itself.
-Downside protection in USD/JPY remains in demand, with put strikes at Y106,
106.95-107.00 and Y105.00 the most significant. The trades are typified by one
of the larger put spreads crossing in early Asia-Pac: a $100mln 106.45/106.95
put spread rolling off on Monday, the final session of Q3.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com