LNG: Indonesia Meets 2025 LNG Needs By Redirecting Cargoes 

• GBP1.00bln have been on offer.
• This leaves GBP36.623bln of the gilt in issue.

• In the FI space, recent gains in Bund futures resulted in a break of resistance at 128.87, the Aug 28 high and short-term bull trigger. The climb undermines a recent bearish theme and highlights a stronger reversal. Price has moved through the 129.00 handle, signalling scope for an extension towards 129.50, the Aug 5 high. Key support and the bear trigger has been defined at 127.61, the Sep 3 low. First support is 128.58, the 20-day EMA.
• A rally in Gilt futures last week and a bullish start to this week’s session, highlights a stronger corrective cycle. The move higher is allowing an oversold trend condition to unwind. The contract has breached initial firm resistance at 90.84, the Aug 28 and 29 high. A continuation higher would open 92.06, the Aug 14 high. On the downside, initial support lies at 90.65, the Sep 5 low.

Mixed SOFR & Treasury options reported overnight, the former leaning towards upside calls in the lead-up to this morning's PPI inflation data. Underlying futures weaker but off overnight lows in the last few minutes. Projected rate cuts retreating from late Tuesday (*) levels: Sep'25 at -27.2bp (-28.7bp), Oct'25 at -45.9bp (-49.6bp), Dec'25 at -67.5bp (-71.4bp), Jan'26 at -79.9bp (-85.1bp).

• SOFR Options:
  • Block/screen over 35,000 SFRZ5 96.43 calls, 8.0 ref 96.33 to -33.5
  • Block, 2,870 SFRM7 96.87 calls 54.5 vs. 97.095/0.58%
  • Block, 5,000 SFRH6 96.50/96.87/97.00 broken put trees, 4.75/splits vs. 97.11
  • -9,000 SFRH6 96.00/96.31/96.43 broken put trees, 3.0
  • 9,000 SFRH6 96.00 puts, 1.75 last
  • 3,500 SFRV5 96.37/96.62/97.00 broken call flys ref 96.335
  • +3,274 SFRZ5 96.50/96.62/96.68/96.81 call condors, 1.0
  • 5,000 SFRX5 96.43/96.68 call spds
  • 5,000 SFRV5 96.31 puts ref 96.335
  • 2,000 SFRZ5 96.50/96.62 call spds ref 96.33
  • +5,000 SFRU5 95.93/96.00/96.06 call flys, 2.5
  • over 7,000 SFRU5 96.00/96.12/96.25 call flys, 0.5-0.75 ref 95.9725
• Treasury Options:
  • +2,000 FVZ5 110/111 call spds vs. 108.75 put, 2.0 net ref 109-25
  • 2,000 USX5 133 calls vs. 3,000 USX5 104 puts ref 116-27
  • -1,000 TYZ5 113 straddles, 209 ref 113-10
  • +5,000 TUV5 104/104.75 call over risk reversals, 2
  • -4,000 TYZ5 130.5 calls w/ -2,000 TYZ5 104.5 puts ref 113-10.5
  • 1,140 TYV5 112/112.5 3x2 put spds ref 113-09.5
  • 2,200 TYV5 112.25 puts ref 113-08.5