BRIEF: EC Approves Italy's 5th NGEU Payment Request For EUR11 billion

MNI BRIEF: ECB's Eye On French Markets, Price Stability Key

MNI BRIEF: Lower Inflation Path Remains Bumpy - Lagarde

MNI BRIEF: 'Noise' Driving Economic Deterioration- Campos Neto

MNI China Daily Summary: Tuesday, July 2

MNI BRIEF: China Aims For AI Standards By 2026

EZ/UK T-Bill Calendar: Greece, EU Auction on Wednesday

EZ/UK Bond Supply Calendar: 2.60% Aug-34 Bund Due Wednesday

Ita-coin Nowcast Negative For Second Month

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Eurodollar/Treasury Option Roundup

US TSYS
Friday's Eurodollar, Treasury option flows were a bit more subdued than the prior session, perhaps wary of adding to positions after underlying rates sold off sharply in early trade -- taking a wait and see approach ahead of the weekend.
  • Note on underlying Treasury futures and yield curve in relation to recession concern -- or measure of confidence in Fed managing a soft landing. Tsy yield curves bear flatten sharply! After starting off the session around +12.17, the 5s30s curve slipped below 2.0 to 1.613 low -- early 2006 levels when pair inverted from Feb-March to low of -12.669 on Feb 27, 2006. Meanwhile, 3s, 5s and 7s extending inversion vs. 10s, 5s10s at -8.125 vs. -9.094 low.
  • Treasury options appeared to favor buying put structures across the curve with particular interest in 5s as the sector seems to be the most sensitive to hawkish Fed shifts.
  • Over +67,000 FVK 114 puts, 26-26.5 and +10,000 FVM 112/113 put spds, 10.5 vs. 114-26.5/0.08%. in 10Y options: +7,000 TYK 121/122.5 put spds 7.0 over 124.5 calls vs. 122-25/0.46%; 30Y: +6,000 USK 147/147.5 put spds, 3
  • Eurodollar option trade was more mixed on net, couple notable trades: buyer of +10,000 Jun 98.87/99.00 call spds, 1.25 followed by sale of -10,000 Sep 97.50/97.87 call over risk reversals, 3.0 vs. 97.72/0.80%. Late iron condor sale took in 28.5 on -4,000 Jun 96.25/96.75/97.87/98.8.37 iron condors.
BulletMarketsFixed Income BulletsHomepage
BulletMarketsFixed Income BulletsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.