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OPTIONS

Expiries for Oct22 NY cut 1000ET (Source DTCC)

MARKET INSIGHT

Price Signal Summary - USDJPY Dips Considered Corrective

SHORT-STERLING OPTIONS

SONIA Call Ladder Buyer

EURIBOR OPTIONS

Mixed Earlier Trades

BONDS

Driven by two Ps: Pill and PMIs

Better selling has been the trend

BOND SUMMARY

Better selling interest has mostly dominated price action in core bonds.

  • Large selling clips went through in Bobl, Schatz, OAT and Gilt, as Govies take their cues from the constant better buying in Equities, as investors price a clear win for Biden.
  • Although a contested result will change the outlook.
  • Peripheral spread have seen decent tightening as the German long end underperform.
  • Greece and Italy leads, 5.7bps and 3.5bps tighter respectively.
  • Gilt have traded in tandem with core bond, and are 31 ticks down on the day.
  • US treasuries have followed suit, and trade heavy down 5 ticks at the time of typing.
  • Looking ahead, we have a light day on the data front, with US Factory orders and final reading for US durable goods.
  • All eyes are of course on the US election results Tuesday/Wednesday.
  • Bund futures are down -0.19 today at 176.05 with 10y Bund yields up 1.8bp at -0.622% and Schatz yields up 0.3bp at -0.806%.
  • BTP futures are up 0.26 today at 149.76 with 10y yields down -1.6bp at 0.730% and 2y yields down -0.5bp at -0.356%.
  • OAT futures are down -0.11 today at 170.04 with 10y yields up 1.4bp at -0.340% and 2y yields up 0.3bp at -0.731%.
  • Gilt futures are down -0.31 today at 135.76 with 10y yields up 3.3bp at 0.250% and 2y yields up 2.2bp at -0.57%.
  • TY1 futures are down -0-5+ today at 138-04 with 10y UST yields up 3.0bp at 0.875% and 2y yields up 0.4bp at 0.161%.
MNI London Bureau | +44 203-865-3806 | fabrice.benhassine@marketnews.com
MNI London Bureau | +44 203-865-3806 | fabrice.benhassine@marketnews.com