EU TRANSPORTATION: Maersk: FV

Larger FX options rolling off at today's NY cut include sizeable strikes in EUR/USD, which may help contain the price inside 1.1600-1.1690 - particularly as the data and speaker calendar for today is muted. Unusually, there's a decent sized expiry in NZD/USD just below today's low of 0.5939 - equating to N$1.2bln. Full list here:

• EUR/USD: $1.1550(E1.2bln), $1.1600-05(E1.1bln), $1.1650-60(E940mln), $1.1690-00(E1.5bln), $1.1750(E1.0bln)
• USD/JPY: Y147.00($571mln)
• GBP/USD: $1.3331-45(Gbp552mln)
• NZD/USD: $0.5920-30(N$1.2bln)

• MNI: ITALY JULY FINAL HICP 1.7% Y/Y
• ITALY JULY FINAL HICP -1.0% M/M

As noted in our gilt comment, a pullback from session highs in wider global equity index futures is helping underpin the early rally in bonds at this stage, although TY, Bund & gilt futures remain within the ranges in play over the past couple of sessions.

• Other supportive factors include:
• Some focus on the potential deflationary impact surrounding this week’s Trump-Putin meeting in Alaska. However, Ukrainian President Zelenskiy has pushed back against the idea of land concessions in any peace deal with Russia, seemingly leaving the two sides very much at odds when it comes to pre-requisites surrounding any ceasefire agreement.
• A favourable cash flow backdrop for EGBs on the week (issuance pares back, while notable redemptions and coupon payments are noted, see earlier bullets and our weekly EGB issuance document for greater details).
• Another particularly soft UK KPMG-REC report on jobs ahead of tomorrow’s official labour market report from the ONS.
• Core global bond curves bull flatten, EGB spreads to Bunds little changed.