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US 10YR FUTURE TECHS

(U1)‌‌ Bullish Theme Intact

OPTIONS

Expiries for Jun15 NY cut 1000ET (Source DTCC)

GILT SUMMARY

Still Offered

FED

NY Fed Operational Purchase

BTPS

Mizuho note that "there's asymmetry in BTP 5s7s9s which means that 7-Year should be the preferred point for rates investors in the 5-10 Year sector. 7-Year BTPs should still outperform during periods of Italian stress on bond RV returns. However, with dispersion on the Italian curve now much reduced, 5s7s9s is also more likely to richen on a rally." They point to "BTP Nov25-Sep27-Mar30 as the sort of BTP position to hold going into S&P's rating review" (on Friday October 23). They expect "no change in rating, but if a downgrade does come it would not be a game changer, and any widening should be temporary."

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