EU CREDIT SUPPLY: Huhtamaki: Final Terms

• GBP1.250bln have been on offer.
• This leaves GBP42.042bln of the gilt in issue.

Option desks report better upside call trade in SOFR & Treasury options overnight, much better SOFR volumes as they segue from earlier put interest. Underlying futures firmer, projected rate cut pricing mostly steady vs. late Monday (*) levels: Jul'25 at -0.8bp, Sep'25 at -16.6bp (-17.4bp), Oct'25 at -28.1bp (-28.2bp), Dec'25 at -44.4bp (-44.5bp). Year end projection well off early July level of appr -65.0bp.

• SOFR OPTIONS
  • Block, 20,000 SFRZ5 96.25/96.50/96.75/97.00 call condors, 3.25 ref 96.075
  • Block, 5,000 SFRQ5 95.81/95.93/96.00 broken call flys, 3.75 ref 95.84
  • 1,500 SFRZ5 95.25/95.62/95.75 broken put flys ref 96.075
  • 9,200 SFRZ5 96.25/96.50/96.75/97.00 call condors ref 96.05
  • 2,000 SFRZ5 96.25/0QZ5 97.18 call spds, 0.5 
  • +10,300 SFRQ5 95.87/95.93 call spds, 1.25 vs. 95.835/0.15%
  • Block, 2,500 SFRV5 96.18/96.43 call spds, 4.75 ref 96.07
  • 3,000 SFRU5 96.62/97.25 2x1 put spds, 6.5 ref 96.655
  • 2,000 SFRH6 95.87/96.25 2x1 put spds over 96.87/97.12 call spds ref 96.28
  • 9,000 SFRV5 96.25/96.31 put spds over 96.50/96.75 call spds, 3.5 net ref 96.07
  • +1,200 SFRU5 96.00/96.18, 1.0
  • 1,250 SFRU5 95.68/95.75/95.81 put flys, 0.75 ref 95.835
  • +1,300 0QV5 96.31 puts, 3.0
• Treasury Options
  • 12,000 TUV5 104.12/104.37 call spds ref 103-25.62
  • +1,500 wk2 TY 107.75/108.75 put over risk reversals, 0.5 net
  • 2,450 TYU5 112/113 call spds, 8 ref 110-25
  • 1,000 TUU5 103.75/104.12 call spds, 4.5 vs. 103-18.87/0.20%

• Treasury futures are following German Bund's lead ahead of the NY open, climbing off modest overnight lows, albeit on light volumes ahead flurry of morning data ahead tomorrow's FOMC rate announcement.
• Tsy Sep'25 10Y futures currently +5.5 at 110-30 on volume of 215k (+30k over the last hour). Technical resistance at 111-14+, Jul 22 high. A clear break of it would highlight a stronger reversal and open 111-28, the Jul 3 high.