EURIBOR OPTIONS: A very active Option market

• In the equity space, the Feb 3 initial sell-off in the S&P E-Minis contract and the breach of support at 5948.00, Jan 27 low, continues to highlight a possible S/T reversal threat. A resumption of weakness would open 5892.37, the 76.4% retracement of the Aug 5 - Dec 6 bull leg. On the upside, a stronger rally would expose key resistance at 6178.75, the Dec 6 ‘24 high. Clearance of this hurdle would resume the primary uptrend.
• EUROSTOXX 50 futures are holding on to their recent gains and a bull cycle remains in play. Last week’s gains marked  a resumption of the uptrend that started on Nov 21 ‘24. The focus is on 5381.13 next, the 1.764 projection of the Nov 21 - Dec 9 - 20 ‘24 price swing. Initial firm support to watch lies at 5211.11, the 20-day EMA.

"The EU has mandated Citi, Deutsche Bank, HSBC, Morgan Stanley and Société Générale as Joint Lead Managers for its upcoming EUR Fixed Rate RegS Bearer dual tranche transaction comprising an increase of the EU 2.500% benchmark due 4 December 2031 (EU000A3L1DJ0) and an increase of the green EU 3.250% benchmark due 4 February 2050 (EU000A3K4EU0). No further group. The transaction will be launched tomorrow, subject to market conditions."

• MNI pencils in E4-6bln for the short 7-year 2.50% Dec-31 EU-bond tap and E4-6bln for the 25-year 3.25% Feb-50 Green EU-bond (with an overall transaction size of E9-11 likely).

ERK5 97.875/97.9375/98.00/98.0625c condor, bought for 1.5 in 4k.