Eurodollar/Treasury Option Roundup, Back to Chance of 50Bp Liftoff

Fed Chair Powell headline "TOO EARLY TO SAY IF RUSSIA CHANGES FED RATES PATH" could be viewed with a hawkish light if he is thinking in terms of pre-invasion pricing -- in which case short end still needs to trade lower to match last Friday's levels. Cleveland Fed Mester concurs that Russia's war in Ukraine adds unwanted uncertainty, but it's "`CRITICALLY IMPORTANT' FED GETS INFLATION UNDER CONTROL" she said on CNBC Thursday Morning.

• March'22 Eurodollar futures remain under heavy pressure: EDH2 -0.095 at 99.26 at the moment, 99.255 low! Ongoing interest in buying downside insurance, outright or funded as Whites (EDH2-EDZ2) remain under heavy pressure: -0.095-0.055. Salient put trade:
  • Block +10,000 Dec 98.00/98.25 put spds, 6.0 over 98.75/99.00 call spds
  • 5,000 Dec 97.75/98.00/98.25 put flys
  • Ongoing buyer Dec 97.50/97.75/98.00/98.25 put condors, appr +80k/wk 4.5-5.0
  • 5,000 short Apr 97.75/98.00/98.25 put flys
  • 5,000 short Apr 97.62/97.75/97.87 put flys adds to O/N trade