Price action was mostly......>

SHORT-STERLING OPTIONS: Price action was mostly Equity and US Treasury led.

-EGBs have stayed buoyed initially on the back of lower equities.

-Bund also corrected from the Germany/US decoupling we witnessed yesterday

afternoon.

-US ISM Non-Manufacturing Index, was another disappointment for the US economic

outlook.

-The data came at 52.6 versus 55.0 expected and rate cut OIS odds for 30th

October jumps from 68.5% to 71%.

-Bund are 89 ticks up on the day, with Tnotes up 22+ ticks at the time of

typing.

-Focus remains on Brexit and few Fed speakers.

- Bund futures are up 0.88 today at 174.67 with BTP futures up 1.00 at 145.90

and OAT futures up 0.85 at 170.58.