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MNI ASIA MARKETS ANALYSIS:

HIGHLIGHTS

US TSYS

SOFR FIXES AND PRIOR SESSION REFERENCE RATES

SOFR Benchmark Settlements:

  • 1M -0.00589 to 5.33568 (+0.00216/wk)
  • 3M +0.02686 to 5.12841 (+0.01572/wk)
  • 6M +0.05907 to 4.83969 (+0.03372/wk)
  • 12M +0.10199 to 4.38660 (+0.03252/wk)
US TSYS: Repo Reference Rates
  • Secured Overnight Financing Rate (SOFR): 5.32% (-0.03), volume: $2.131T
  • Broad General Collateral Rate (BGCR): 5.32% (+0.00), volume: $799B
  • Tri-Party General Collateral Rate (TGCR): 5.31% (-0.01), volume: $778B
  • (rate, volume levels reflect prior session)
STIR: FRBNY EFFR for prior session:
  • Daily Effective Fed Funds Rate: 5.33% (+0.00), volume: $93B
  • Daily Overnight Bank Funding Rate: 5.33% (+0.01), volume: $261B

FED Reverse Repo Operation

RRP usage rebounds to $330.317B from $307.141B Thursday -- compares to $286.660B on Wednesday, Aug 7 -- the lowest since mid-May 2021. Number of counterparties steady at 63.

US SOFR/TREASURY OPTION SUMMARY

Option desks reported mixed SOFR/Treasury option flow overnight on lighter volumes, SOFR leaning towards early 2025 call skew buying, Treasury options leaning towards 10Y puts. Underlying futures firmer on light summer volume (TYU4 <290k). Projected rate cuts have receded vs. late Friday levels (*): Sep'24 cumulative -33.1bp (-33.8bp), Nov'24 cumulative -62.8bp (-64.2bp), Dec'24 -95.4bp (-96.8bp).

SOFR Options:
-10,000 SFRU4 94.81/95.00 put spds, 2 ref 95.0625
+15,000 SFRU4 95.18/95.31 call spds 1.75-2.0 ref 95.06
Block, 8,000 SFRU4 94.87/95.00 put spds 1.75 ref 95.0625
Block/screen, +6,000 SFRH5 96.25/96.50 call spds vs. 95.50/95.75 put spds, 1.0 net call spd over vs. 96.155/0.25%

Treasury Options:
Block, +5,000 wk1 TY 112.5/113.5 2x1 put spds, 8 vs. 113-07.5/0.10%
20,500 TYU4 112.5 puts, some tied to 113.5 calls/strangle
over 3,900 TYU4 113 puts, 14 ref 113-08.5
3,000 TYU4 113.25 straddles, 47 ref 113-09
2,200 TYU4 113.25 calls, 18 ref 113-08

EGBS

OPS

FOREX

EXP

EQUITIES

TX

COMMODITIES

TUESDAY DATA CALENDAR

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