OPTIONS: Expiries for May05 NY cut 1000ET (Source DTCC)
May-02 14:59
- EUR/USD: $1.1073(E2.4bln), $1.1100($1.5bln), $1.1120-25(E1.1bln), $1.1190-00(E2.0bln), $1.1285-00(E3.0bln), $1.1400(E636mln)
- GBP/USD: $1.3100-20(Gbp529mln)
- EUR/GBP: Gbp0.8525(E740mln)
- AUD/USD: $0.6500(A$509mln), $0.6550-60(A$1.0bln), $0.6635-45(A$1.1bln)
- USD/CAD: C$1.3865-70($2.6bln)
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TARIFFS: Deutsche Bank Expect Any Relief Rally Will be Short-Lived for Equities
Apr-02 14:59
- On today's market outcomes from the tariffs announcement, Deutsche Bank write that it is hard to see an outcome where we see material and sustained upside for equities.
- They write that even if tariffs are perceived to be on the lenient side, there remains a high degree of uncertainty over how various counties will respond and whether Trump will be more aggressive over time.
- Deutsche Bank see the broader USD reaction as likely to be led by equities and therefore see greater downside risks for the USD, led by the JPY and gold.
SWAPS: Long End ASWs Weaker Alongside Outright Bunds
Apr-02 14:54
Long end ASWs a little weaker on the day alongside the sell off in outright bonds detailed recently.
- Bund & Buxl ASWs have failed to push meaningfully above levels that prevailed ahead of the “whatever it takes” German fiscal moment, while Bund yields haven’t broken below the lows witnessed since the German fiscal loosening was table, pointing to new ranges being established as Germany moves to a new fiscal framework.
BUNDS: Selling Off On Report Of EU Growth Shock Mitigation Action
Apr-02 14:49
Bunds sell off as BBG sources suggest that “the European Union is preparing a package of potential emergency measures to support parts of its economy that could be hit the hardest by US President Donald Trump’s sweeping tariffs”.
- The attempted mitigation of at least some of the growth shock that would stem from the U.S. tariffs is the driver here.
- Bund futures now ~40 ticks off session highs.
- Note that key support in 10-Year yields (2.654%) held for a third consecutive day.
