### POV: FIXED INCOME UPDATE: Implieds......>

OPTIONS: ### POV: FIXED INCOME UPDATE: Implieds running softer in Eurodollar and

Tsy options for the most part, in-line with dip in Tsy ylds, and not much event

risk priced into a largely anticipated rate hike from the FOMC today. Risk event

would be if the Fed didn't tighten another .25 bps today. Smaller outright and

straddle sales in near expirys adding to slippage. Meanwhile, heavier buying in

EDH0, EDM0 and EDU0 Eurodlr put spds today have been more supportive for

implieds. 

- Interesting dichotomy: Tue' theme centered on massive Red Dec'19 OTM put sales

to help fund upside calls -- fading more prevalent downside put skew implying

either a pause in tighter Fed policy into Dec 2019 -- and/or continued move OFF

inversion of Red Dec'19 vs. Green Dec'20 (from -0.020 last week to +0.050-0.045

on massive buying yesterday).

- On latter dis-inversion, corresponds w/rise in Euribor from mid-Aug lows (tied

to cooling EM and systemic sov risks around Italy?). Also note the continued

rise in 3M FRA/OIS spds to appr 30.0 today vs. 19.0 in mid-Sep (part due to EDU

expiry). More on that in analysis piece including LIBOR transition to SOFR.