EU-RUSSIA: Commission Unveils Proposals For 19th Round Of Sanctions
European Commission President Ursula von der Leyen has delivered a statement announcing the proposed 19th round of sanctions on Russia in response to Moscow's full-scale invasion of Ukraine. The proposals include: a full transaction ban on Russian banks (including those operating in third countries), a ban on investments in Russian special economic zones linked to the war, a full prohibition of Russian LNG imports by Jan 2027 (Rosneft and Gazpromneft will now be on a full transaction ban), expanding sanctions on Russia's shadow fleet, expanding export bans to include additional chemicals, metals, and salts, and sanctions on individuals involved in the abduction and indoctrination of Ukrainian children.
- VdL: "We are now going after those who fuel Russia's war in purchasing oil in breach of sanctions"
- Stuart Dowell at TVP World outlines the EU's plan for utilising frozen Russian assets to bolster Ukraine's finances: "Brussels is putting in place a mechanism to channel money to Ukraine from frozen Russian assets without needing unanimous approval. That means Hungary’s veto will no longer block aid. The plan is being described as a “reparations loan.” The Commission would issue zero-coupon bonds, guaranteed by member states that choose to join a coalition of the willing. Ukraine would only have to repay once Russia pays compensation. In practice, the scheme unlocks at least $170 billion. [...] The bond issue scheme is a way of using the frozen assets without taking the money directly. The EU is worried that direct confiscation would harm the Euro's reputation as a reserve currency."
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US TSY FUTURES: September'25-December'25 Roll Update
Latest Tsy quarterly futures roll volumes from September'25 to December'25 below. Pace is rising slowly ahead the "First Notice" date on August 29. Current roll details:
- TUU5/TUZ5 appr 88,900 from -8.12 to -7.88, -8.0 last; 6% complete
- FVU5/FVZ5 appr 32,700 from -5.0 to -4.5, -4.75 last; 10% complete
- TYU5/TYZ5 appr 28,700 from -0.5 to +0.0, -0.25 last; 5% complete
- UXYU5/UXYZ5 under 6,900 from 0.5 to 1.0, 0.5 last; 3% complete
- USU5/USZ5 appr 500 from 13.25 to 13.75, 13.25 last; 8% complete
- WNU5/WNZ5 appr 3,600 from 8.0 to 8.5, 8.25 last; 4% complete
- Reminder, Sep futures don't expire until next month: 10s, 30s and Ultras on September 22, 2s and 5s on September 30. Meanwhile, Sep'25 Tsy options will expire this Friday, August 22.
EGB SYNDICATION: Finland New 7-year Apr-32 RFGB: Allocations
- HR: 110% vs 0% Feb-32 Bund
- Spread set earlier at MS + 29bp (guidance was MS + 31bps area)
- Size: E4bln (MNI expected E3bln but noted upsizing to E4bln was possible)
- Books in excess of E33bln (inc E2.25bln JLM interest)
- Maturity: 15 April 2032
- Coupon: Short first
- Settlement: 28 August 2025 (T+6)
- ISIN: FI4000591862
- Bookrunners: Barclays (DM/B&D) / Bofa Securities / Danske Bank / Deutsche Bank / J.P. Morgan
- Timing: Hedge deadline is 13:00 UKT / 14:00 CET
US TSYS: Early SOFR/Treasury Option Roundup: Oct'25 10Y Calls Ongoing
SOFR and Treasury options volume gaining ahead of the NY open, large Oct'25 10Y call interest carries over from Tuesday, Sep Tsy option positioning/unwinds ahead of Friday's expiration. SOFR option flow more paired. Underlying futures trading steady to mildly higher (off highs after MBA apps data). Projected rate cut pricing retreat slightly from late Tuesday (*) levels: Sep'25 at -21.1bp (-21.7bp), Oct'25 at -34.9bp (-35.1bp), Dec'25 at -54.1bp (-54.4bp), Jan'26 at -65.1bp (-65.6bp).
- SOFR Options:
- 8,000 SFRU6 96.75/97.25 2x1 put spds ref 96.805
- 1,400 SFRZ5 96.25/96.37/96.50/96.62 call condors ref 96.21
- Block, 4,500 SFRZ5 96.25/96.50/96.75/97.00 call condors, 6.0 ref 96.21
- 6,000 SFRU5 96.00/96.12/96.25 call flys ref 95.90
- 4,000 SFRU5 95.87/95.93 put spds ref 95.90
- Treasury Options: (reminder Sep options expire Friday)
- Block/screen, over 10,800 TYU5 111 puts, 2 vs. 111-22.5/0.08%
- over 5,600 TYU5 112 calls, 8 last
- over 5,300 TYU5 112.5 calls, 2 last
- over 92,600 TYV5 113 calls, 20-23 ref 111-24.5 to -25.5 (78k trade Tuesday)
