Trial now
US EURODLR OPTIONS

Early Trade, Red Dec Put Fly, Overnight Vol Buy

LATAM FX

Price Signal Summary: USDMXN Bulls Return

SHORT-STERLING OPTIONS

SONIA put spread

Sign up now for free access to this content.

Please enter your details below and select your areas of interest.

The price action early Tuesday has been to fade Monday afternoon's impressive core FI rally / bull flattening. Bear steepening in the Bund curve contrasts modestly with bear flattening in the Gilt curve.

  • Periphery spreads are tightening, with Greece outperforming (10Y GGB in 2+bps vs Bunds).
  • As with yesterday's start, the early tone has been largely risk-on: we're eyeing all-time highs in some European equity indices (Eurostoxx600 and FTSE 250).
  • Not much in the way of key scheduled events outside of supply: Austria kicks off bond issuance for the week this morning with E1.495bln of 4/10-year RAGBs; UK sells GBP2.0bln of 30-year 1.25% Jul-51 Gilt.

Latest levels:

  • Sep Bund futures (RX) down 7 ticks at 176.75 (L: 176.69 / H: 176.93)
  • Sep Gilt futures (G) up 5 ticks at 130.09 (L: 130.01 / H: 130.22)
  • Sep BTP futures (IK) down 5 ticks at 154.79 (L: 154.74 / H: 154.94)
  • Italy / German 10-Yr spread 0.8bps tighter at 105bps