US TSYS: Eurodollar/Tsy Option Roundup, Puts Persist
With some decent call trade in the mix, varied put trades drove volumes as underlying rate futures unwound midweek support Thursday. Underlying futures held weaker levels, early real vol evaporating as levels held near middle of the session range.
- Rate-hike insurance position building gained momentum as market consensus over multiple 50bp hikes (as opposed to 75bp) grows - despite this morning's Real GDP surprising decline of -1.4% annualized (cons +1.0%).
- Highlight Eurodollar trade included early block buy of 10,000 Sep 97.12 puts at 21.5 vs. 5,000 Sep 98.12 calls at 7.0 vs. 4,000 EDU2 97.33; additional block buy 20,000 Dec 96.00/97.00/97.37 broken put flys, 13.5 likely rolling down strikes as underlying Dec futures traded 96.855 (-0.070).
- Salient Treasury option trade included a buy of 12,000 FVM 111/112 put spds 13.5 and +5,000 FVM 110.5/112.5 put spds 20 over FVM 114.5 calls vs. 112-27.25/0.48%. Call highlight: buyer of 24,000 TYM 122/123.5 calls, 9.
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EURJPY TECHS: Trend Needle Still Points North
- RES 4: 140.03 High Jun 23 2015
- RES 3: 139.00 High Aug 21 2015 and a key resistance
- RES 2: 138.62 High Aug 25 2015
- RES 1: 137.50/53 High Feb 2 ‘18 and major resistance / High Mar 28
- PRICE: 136.16 @ 17:07 GMT Mar 29
- SUP 1: 133.94 Low Mar 28
- SUP 2: 132.95/33 Low Mar 24 / 23
- SUP 3: 131.46 20-day EMA
- SUP 4: 130.46 50-day EMA
EURJPY traded to a fresh trend high Monday as the recent strong impulsive bull run accelerated. The cross cleared a key resistance last week at 134.13, Jun 1 2021 high. This strengthened bullish conditions and Monday’s gains reinforce current conditions. It is worth noting that the trend has entered overbought territory as it steepens - a possible risk for short-term bulls. The focus is on 137.50 (probed), the Feb 2 2018 high and a major resistance.
WHITE HOUSE: White House Presser Beginning Shortly
The White House daily press briefing with Director of Communications Kate Bedingfield is scheduled to begin shortly.
- A livestream can be followed here.
MNI: CANADA TO PRESENT BUDGET APRIL 7, FREELAND SAYS
- MNI: CANADA TO PRESENT BUDGET APRIL 7, FREELAND SAYS
