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AUSTRALIA: Albanese Lines Up Budget for May Election

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EUrodollar/SOFR/Tsy Option Roundup: Put Unwinds Precede New Buys

US TSYS
Heavy put volume Friday as underlying rate futures sold off in reaction to higher than expected May CPI, 1.0% vs. 0.7%, spurred heavy short end selling w/ 2Y yields climbing over 3.0 to 3.0486% high for the first time since 2008!
  • Overall put trade two-way with better early selling on profit taking: -7,000 TYQ 117 puts, 115; -15,000 TYN 116/117 put spds, 21; -22,000 wk2 TY 117 puts, 2-4; and vol selling: -10,000 Dec 96.50 straddles, 57.0.
  • Put buyers gradually returned as short end rates held near lows through the second half: +5,000 Mar 94.50/95.50 put spds, 14.5-15.0; +10,000 Jun 95.50/96.00 2x1 put spds, 1.5. In SOFR options: Block buy of 10,000 SFRZ2 95.87/96.12 put strip, 12.0 vs. 96.85/0.20%.
  • One Tsy 5Y trade of note: -12,000 FVN 111/111.25, 4.5 ref 110-28.25 -- this after yesterday's +10,000 wk2 5Y 111/111.25 put spds at 1.5 vs. 111-24.5/0.05% -- anticipating today's hot CPI.
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