EQUITY OPTIONS: Estoxx Put Spread

CBK (19th Dec) 17p, bought for 0.11 in 10.75k.

• Treasuries are marginally firmer overnight, with intraday gains earlier helped by softer than expected UK in what’s otherwise seen little moves of note.
• Today’s 20Y re-open highlights an otherwise thin docket after last month’s solid auction.
• Trump’s NATO meeting will also be watched later on, as will his comments more broadly throughout the day. He yesterday urged Senate Republicans to hold the line on the government shutdown – now the second longest in history – whilst also floating that the meeting with China’s Xi maybe won’t happen albeit having said he expects to make a good deal with Xi just beforehand.
• Cash yields are 0.6-1.0bp lower across the curve.
• TYZ5 trades unchanged at 113-24 in what has been a particularly narrow range of 113-21 to 113-25 under subdued cumulative volumes of 200k.
• The bull cycle remains intact, with resistance seen at 114-02 (Oct 17 high) before 114-10 (Apr 7 high continuation), whilst support is seen at 113-03+ (20-day EMA).
• Data: Weekly MBA mortgage applications (0700ET)
• Coupon issuance: US Tsy $13B 20Y Bond re-open - 91210UN6 (1300ET). Last month’s 20Y auction saw a small 0.2bp trade through along with more encouraging internals, with a bounce in bid-to-cover and indirect take-up along with the lowest dealer take since mid-2024.
• Bill issuance: US Tsy $69B 17W bill auction (1130ET)
• Politics: Trump in NATO meeting (1600ET)

• Date $MM Issuer (Priced *, Launch #)
• 10/22 $1B Rep of Korea WNG 5Y +19a
• 10/22 $Benchmark Alberta 10Y SOFR+81
• 10/22 $Benchmark Pershing Square 7Y investor calls
• $10.8B Priced Tuesday