EQUITIES: EU Cash Opening calls

DUU5 107.10/107.20/107.30/107.40c condor, bought for 2.5 in 3k.

Core global FI futures have pared the initial downtick that followed weekend confirmation of the U.S.-EU trade deal, with ongoing uncertainty surrounding Sino-U.S. relations, lower expected inflation outcomes stemming from the weekend deal and continued headline uncertainty limiting the initial weakness, even with equities rallying.

• SONIA futures are essentially flat.
• BoE-dated OIS is also steady, showing 22.5bp of easing for August, 25.5bp through September, 40.5bp through November and 45.5bp through year-end, at the hawkish end of the multi-week range and compared to ~58bp of cuts through year-end that was priced just a couple of weeks ago.
• There is little of note on the UK calendar today, which will leave focus on macro matters (any ongoing adjustment the U.S.-EU trade deal and Sino-U.S. discussions in Stockholm).
• Slightly further out, final UK manufacturing PMI data is due Friday, with nothing in the way of BoEspeak scheduled until next week’s monetary policy decision. The overwhelming consensus looks for a cut at that meeting.

• There's some early activity in the Blue calendar spread in the Euribor, while the early outright volumes were tiny, the ERH9/M9 was sold at 4.5 in ~4.7k outright, the most traded calendar spread along the whole strip.
• There's now a notable jump in the outright volumes in the ERH9 and ERM9, this is all spread related, now trading on legs.
• The ERH9/M9 has been trading at a record high in the past 2 Weeks.