US TSY OPTIONS: 10Y Put Sale, Closer

• RES 4: 0.9066/9266 High Sep 28 / High Sep 26 and key resistance
• RES 3: 0.8980 High Sep 29
• RES 2: 0.8781/8867 High Oct 21 / 12
• RES 1: 0.8700 20-day EMA
• PRICE: 0.8595 @ 16:11 BST Oct 31
• SUP 1: 0.8559 76.4% retracement of the Aug 2 - Sep 26 rally
• SUP 2: 0.8522 Low Aug 30
• SUP 3: 0.8471 Low Aug 28
• SUP 4: 0.8408 Low Aug 24

EURGBP traded lower Monday as the cross starts the week on a softer note. A bearish theme remains intact and the print below support at 0.8579, the Oct 17 low, reinforces current bearish conditions. Attention is on 0.8559 next, a Fibonacci retracement. A break would open 0.8522, the Aug 30 low. Key short-term resistance is seen at 0.8781, the Oct 21 high, where a breach would reinstate a bullish theme.

Investment-grade corporate credit risk levels bounced from Fri's mid-Sep levels Monday, modest unwinds ahead of Wed's FOMC policy annc.

• Investment grade risk measured by Markit's CDXIG5 index is currently +2.246 at 89.771; CDXHY5 high yield index at 99.368 (-0.611).
• Outperforming credit sectors (tighter or least wide): Communications (-1.8) followed by Materials and Subordinated Financials both (-1.5)
• Lagging sectors (wider or least narrow): Sr Financials (-0.8), followed by Consumer Staplesand Health Care, both -0.9.