EMISSIONS: EU Opens Consultation On Extending CBAM To Downstream Products
{The EC opened consultation on expanding the scope of the CBAM to cover certain downstream products, aiming to further reduce the risk of carbon leakage, it said.
- A previous BCG report suggested that EU buyers for CBAM-covered products can proactively hedge short-term CBAM exposure by shifting to finished goods, it said.
- The consultation will be opened until 26 August, and the response is planned for Q4 2025
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SOFR OPTIONS: Put Condor seller
SFRU5 95.87/95.75/95.68/95.56p condor, sold at 5.75 in 2k and 5.625 in 10k.
US TSYS: Goldman Struggling To Turn Bullish
Goldman Sachs write “despite solid auction results and some reduction in bearish pressures from abroad, we still struggle to find compelling reasons to be outright bullish on the long-end. Certainly growth weakness could justify lower yields across the curve, but terminal rate pricing seems reasonable given the information in hand, and the headwinds across diminished hedge value, the lack of fiscal restraint, and potential shifts in the demand landscape remain unperturbed”.
- They suggest that “Section 899 of the House fiscal bill sits as another source of uncertainty that likely doesn’t help to incentivize foreign appetite, reinforcing a greater degree of price sensitivity that we think helps to sustain higher levels of term premia in the Treasury curve”.
SCHATZ: The Schatz spread trades in Massive size
Massive Schatz spread goes through.
- DUM5/U5 bought for -8 in ~81.5k.
