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UK T-BILL AUCTION PREVIEW

1/3/6-month UKTBs

OPTIONS

Expiries for Oct22 NY cut 1000ET (Source DTCC)

MARKET INSIGHT

Price Signal Summary - USDJPY Dips Considered Corrective

SHORT-STERLING OPTIONS

SONIA Call Ladder Buyer

Watch cross assets

BUNDS

Risk on leads assets overnight, and Bunds are in turn better bid on the cash open, reflation unwind

  • Fed speakers continue to dampen inflation expectation.
  • As per Bloomberg President Esther George (non voter, but will be next year) said policy makers shouldn't dismiss the surge in U.S. inflation as just temporary and need to be "nimble"
  • ESM1 (mini S&P) isn't far off the May peak situated at 4238.25, now at 4209.75.
  • US and German curves trade flatter
  • This morning sees German IFO, but very little in terms of tier 1 data.
  • Once again plenty of speakers are scheduled, including Riksbank Ingves, Fed Barkin, Evans, Quarles, ECB Villeroy, Lane and BoE Tenreyro.
  • SUPPLIES: Netherlands 30yt EU2bn (Equates to 43k Bunds), US $60bn 2yr.
  • Watch USD extending losses on the risk on tone
MNI London Bureau | +44 203-865-3806 | fabrice.benhassine@marketnews.com
MNI London Bureau | +44 203-865-3806 | fabrice.benhassine@marketnews.com