Late SOFR/Treasury Option Roundup

FI option trade has been relatively mixed on lighter volumes until yesterday. Tuesday trade carries over to today: decidedly bearish positioning in SOFR options (combination of rate cuts evaporating and expectation of surge in Bill issuance if debt ceiling gets raised). While treasury option trade remains bullish - outright calls, call spds bought in 2s, 5s and 10s. The gist is positioning tone has segued from upside rate cut hedging a couple weeks ago,. to non-comital as debt ceiling gyrations pushed direction players to the sidelines the last several days, to more consistent downside insurance buying the last two days. NOTE on the latter, these are NOT huge positions, more fast money, spec trades looking for projected rates cuts to continue to soften, rather than rate hike (or heavy bill issuance on back of debt ceiling agreement) positioning.

• SOFR Options:
  • Block, 5,000 SFRH4 94.50/95.00/95.50 put flys, 9.5 ref 95.745
  • -4,000 SFRV3 94.43/94.68/94.93/95.18 put condors, 9
  • 7,000 SFRM3 94.50/94.62/94.75 put flys
  • 3,000 SFRM3 94.81/94.93 call spds, ref 94.7575
  • 2,500 SFRM3 94.62/94.75/94.87/94.93 broken put condors res 94.7575
  • 2,000 OQU3 97.12/97.37/97.62/97.87 call condors ref 96.555
  • Block, 10,000 SFRU3 94.12/94.37 put spds, 1.75 ref 94.95
  • Block, 12,000 2QM3 96.25/96.50 put spds, 3.25 ref 96.92 to -.925
  • 5,000 OQM3 95.25/95.50 put spds, 1.25 ref 96.24
  • 2,000 2QM3 96.37 puts, 2.0 ref 96.91
  • 2,000 OQM3 96.00/2QM3 96.68 put spds
  • 2,500 SFRM3 94.81/94.93/95.06 call flys ref 94.77
• Treasury Options:
  • +3,500 TYU3 110.5/111.5 put strip, 126 vs. 114-11
  • -10,000 TYM3 113.5/114.5 put over risk reversals, 6 net
  • over -17,500 TUN3 103.12/103.75 put spds 26 to 25.5 ref 103-03.25
  • 5,000 TYN3 114/115/116 call flys
  • +4,000 USN3 123 puts, 32 ref 127-10
  • 1,000 FVN3 110/110.25/110.75/111 call condors ref 109-09
  • 3,000 TYN3 116/118 call spds 21 ref 114-17.5
  • 2,250 wk2 TY 113/114 put spds
  • 3,600 TYM3 113.75/114 call spds ref 113-23
  • 5,250 FVM3 109.25 calls, 6 ref 108-23.5