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US TSY OPTIONS

BLOCK, 10Y Put Sale

FED

Reverse Repo Operation, New Record High

OPTIONS

SONIA Dove Strikes Again

STIR
STIR: The main talking point for G3 STIR futures has been the move lower in
short sterling futures this morning with Reds and Greens down up to 9 ticks on
the day. There is no specific driver with some markets contacts pointing to the
move higher recently being overdone and a lack of liquidity. There are also news
stories doing the rounds that Corbyn will not be able to garner enough support
for a no deal-avoiding unity government (but this would likely move the strip
higher rather than lower). There have also been significant moves in gilts
today, particularly at the short-end while the pound has been moving higher. At
the time of writing Whites were unch to 5.5 ticks lower, Reds 6.5-8.5 ticks
lower, Greens 8-9 ticks lower and Blues 6.5-7.5 ticks lower.
- Moves in Euribor and Eurodollar futures have been more muted. The Eurodollar
strip is down 2.5-3.5 ticks across the curuve while the Euribor strip is down
0.5-2.5 ticks with the biggest moves in Euribor Greens.
- The European morning session has been devoid of any significant data, with the
Euro trade surplus a little narrower than expected. US housing starts, building
permits and Michigan confidence are the highlights of the rest of the day.