US TSYS: Late SOFR/Treasury Option Roundup: Put Unwinds

• RES 4: 186.87 High Jan 23 and a key M/T resistance  
• RES 3: 186.36 High Feb 9
• RES 2: 185.93 1.0% 10-dma envelope
• RES 1: 185.55 High Apr 8
• PRICE: 185.11 @ 16:43 BST Apr 8
• SUP 1: 183.52 50-day EMA
• SUP 2: 182.59/181.87 Low Mar 30 / 16 and a key short-term support
• SUP 3: 180.81 Low Feb 12 and a reversal trigger
• SUP 4: 180.10 Low Dec 5 ‘25

EURJPY has traded to a fresh short-term cycle high. Yesterday’s gains resulted in a print above a key short-term resistance at 184.77, the Feb 25 high. The breach highlights a bullish reversal and a false break of a bull channel support drawn from the Feb 28 ‘25 low. A continuation higher would open 186.36 next, the Feb 9 high. Initial firm support to watch is 182.59, the Mar 30 low.       

Wednesday's US rates/bond options flow included:

• TYK6 110.50p bought for 13 in 40k
• SFRM6 96.62/96.75cs, sold at 0.25 in 4k
• SFRM6 96.50/96.43/96.37/96.31p condor, sold at 1.5 in 6.5k
• SFRN6 97.00c, bought for 3.5 in 4k
• SFRZ6 96.68/96.81cs, bought for 3 in 1k (3k total pit/screen)
• SFRU6 96.25/96.37/96.62c ladder, sold the 2 at 0.75 in 6k
• SFRZ6 98.00/99.00cs, sold at 2 in 6k, and sold in the pit at 2.25 and 2 in 10k (16k total)

SOFR hit the lowest since March 23 on Tuesday, falling 3bp to 3.62%. Secured rates were expected to remain soft Wednesday amid potential for cash to flow back into funding markets after the announced ceasefire between the US and Iran.

REPO REFERENCE RATES (rate, change from prev. day, volume):
* Secured Overnight Financing Rate (SOFR): 3.62%, -0.03%, $3260B
* Broad General Collateral Rate (BGCR): 3.61%, -0.02%, $1331B
* Tri-Party General Collateral Rate (TGCR): 3.61%, -0.02%, $1297B

New York Fed EFFR for prior session (rate, chg from prev day):
* Daily Effective Fed Funds Rate: 3.64%, no change, volume:  $106B
* Daily Overnight Bank Funding Rate: 3.63%, -0.01%, volume:  $214B