AMERICAS OIL: Argentina Cuts Export Taxes on Conventional Oil

Modest tone change from better low delta put buying earlier: put strip seller and midcurve vol seller via straddles ahead of the Dec'26 FOMC minutes release

• -1,000 SFRU6/SFRZ6/SFRH7/SFRM7 95.00 put strip, 6.0 total
• -2,000 0QH6 96.93 straddles, 28.0 ref 96.925
• -1,000 0QF6 96.93 straddles, 14.0 ref 96.925

European yields rose slightly Tuesday, in the final cash trading session of the year for EGBs.

• With little impactful data or headlines in the session to catalyse direction, intraday moves were largely flow-related, with yields content to trend higher overall.
• In the only major European data of the session, Spain December headline HICP came in in line with expectations, with the majority of Eurozone countries reporting next week.
• On the day, both the German and UK curves bear steepened, with Bunds underperforming Gilts.
• Periphery/semi-core EGB spreads widened slightly.
• Reminder that while EGBs won't trade again until Friday, there is a shortened session for Gilts Wednesday. There are no data or speakers scheduled until Friday.

Closing Yields / 10-Yr EGB Spreads To Germany

• Germany: The 2-Yr yield is up 0.6bps at 2.121%, 5-Yr is up 1.8bps at 2.448%, 10-Yr is up 2.6bps at 2.855%, and 30-Yr is up 1.7bps at 3.476%.
• UK: The 2-Yr yield is up 0.8bps at 3.728%, 5-Yr is down 0.1bps at 3.951%, 10-Yr is up 1.2bps at 4.498%, and 30-Yr is up 1.1bps at 5.227%.
• Italian BTP spread up 2.1bps at 69.6bps / French OAT up 0.8bps at 70.5bps 

RRP usage inches up to $12.605B with 10 counterparties this afternoon vs. Monday's $10.551B. Compares to December 12 low of $0.838B (lowest level since mid-March 2021); this years highest excess liquidity measure: $460.731B on June 30.