EMISSIONS: EUA DEC25 Implied Volatility Hits All-Time Low

0NU6 96.80/97.10cs vs 0NU6 96.30/96.00ps, bought the cs for -0.25 and flat in 7.5k.

Latest block trade lodged at 10:24:46 London/05:24:46 NY:

• TYZ5 7,460 lots blocked at 112-26, looks like a seller.
• DV01 ~$500K.

• The early risk-off inspired bid in Bund futures has faded, but RXZ5 remains above the 129.13 support area (aligning with the 50-day EMA and October 13 low). Futures are currently -2 ticks at 129.27, with solid results at today's 15-year Bund auction helping the contract away from session lows of 129.22.
• German yields are up to 1bp lower across the curve.
• Alongside the German supply, Italy held a E5bln buyback transaction.
• 10-year EGB spreads to Bunds are up to 1bp wider on the session, with global equity sentiment still relatively weak.
• Following upward revisions in France and Germany, and stronger-than-expected readings in Italy and Spain, the Eurozone services PMI was revised up to 53.0 (vs 52.6 flash, 51.3 prior). With the manufacturing PMI confirming flash estimates at 50.0 on Monday, this left the composite reading at a 29-month high of 52.5.
• There were marginal upward revisions to the ECB's latest forward-looking wage tracker relative to the September iteration, but the general conclusion that compensation pressures are expected to ease in the coming year remains intact.
  • ECB’s Kocher is scheduled to speak on “Negative Rates and the Effective Lower Bound” later today.