OIL PRODUCTS: China's Rising NEVs sales Further Curb Gasoline Consumption: OilCh

SFRZ5 paper paid 96.360 on ~5.5K, taken bid over.

FFV5 sees another 5K lots trade at 95.945, once again bought (~30K trades there all day, price remains offered).

• Follows Monday’s 84K block buyer at the same price (which generated subsequent screen flow of ~50K lots).
• EFFR currently at 4.33%, adjusted for a 25bp cut at today's Fed decision would be 4.08%.
• Implied rate on the trades flagged above is 4.055%.

Bund futures are +20 ticks at 128.91, finding light support from a pullback in brent crude futures and a move away from session highs for major equity futures. An FT story suggesting China has told its tech companies to stop buying NVIDIA AI chips has weakened equities this morning.

• Trading ranges have been fairly contained with today’s risk events still ahead: The BOC decision is due at 1445BST before the more widely anticipated Fed later this evening (1900BST).
• The recovery in Bund futures from yesterday’s low underscores the corrective nature of last Friday’s pullback. Initial resistance is seen at 129.09. which shields key resistance of 129.50 (Aug 5 high).
• German yields are flat to 2.5bps lower, with the curve lightly bull flattening. Today’s long-end Bund supply was digested smoothly.
• Italy also held a sizeable E5bln buyback today, while Greece sold E250mln of GGBs.
• 10-year EGB spreads to Bunds are biased up to 1bp wider. The OAT/Bund spread widened ~1bp after Socialist Leader Faure expressed a lack of progress in latest talks with new PM Lecornu, now at ~80.5bps.
• Eurozone final August HICP saw marginal revisions relative to the flash, while the ECB’s latest wage tracker update continued to point towards easing compensation pressures.