EGB OPTIONS: Bund downside Put Spread

FX Exchange traded Option Covers the ECB's 5th June Meeting:

• EURUSD (6th June) 1.2200c, sold at 0.0010 in 1k.

Well-defined technical parameters remain in play in 10-Year yields.

• While the combination of the stabilisation in U.S. Tsys/broader risk sentiment and a more activist approach towards UK yields from the DMO & BoE has pushed the benchmark away from early April highs, key support levels remain intact.
• Last print: 4.482%
• Feb 28 low: 4.460%
• Trendline drawn off Dec ’21 low (4.411%)
• Feb 6 low (4.375%)
• Apr 7 low (4.363%)

Fig. 1: UK 10-Year Yield (%)

Source: MNI - Market News/Bloomberg

• -6,000 TYM5 111.75 straddles, 142 (imp vol 7.22%)