STIR: Midmorning SOFR Options
Jun-27 14:48
Pick-up in put spread trade as some option desks position short as underlying futures bob around session highs. Salient trade:
- -10,000 SFRH5 94.75/95.00 put spds w/ SFRU4 94.87/95.12 call spds vs. SFRH5 95.50/95.75 call spds, 2.5
- +6,000 SFRU4 94.62/94.68 2x1 put spds +.5 ref 94.845
- -15,000 SFRU4 94.68/94.81 2x1 put spds 3.5 ref 94.85
- +15,000 SFRU4 94.56/94.68/94.81 put flys 4.0 ref 95.14
- +10,000 SFRU4/SFRZ4 94.75 put spds 0.875
- +20,000 SFRU4 94.62/94.75/94.87 put flys 2.5 ref 94.85
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FED: Kashkari – Don’t Think Anyone Has Taken Rate Increases Off The Table
May-28 14:33
- Kashkari (non-voter) in a panel discussion said that he doesn’t think anyone has taken rate increases off the table.
- On that subject, recall this from the FOMC minutes published last week: "Various participants mentioned a willingness to tighten policy further should risks to inflation materialize in a way that such an action became appropriate."
- Back to Kashkari, he says the Fed will do what we need to do if its surprised by the data, although he sees the odds of a hike as quite low.
- The short-run neutral rate may have gone up temporarily.
- He sees the best approach as holding rates for as long as necessary to gain clarity.
- The US labor market has softened but remains tight.
GILT AUCTION PREVIEW: On offer next week
May-28 14:31
The DMO has announced it will be looking to sell GBP2bln of the 4.00% Oct-63 Gilt (ISIN: GB00BMF9LF76) at its autcion next Tuesday, June 4.
EUR: EURUSD call seller trades for more
May-28 14:28
FX Exchange traded option is still trading:
- EURUSD (9th Aug) 1.1250c, sold at 0.0014 and 0.0015 in 6k total now.
