US TSY OPTIONS: Mixed Second Half Trade

• Date $MM Issuer (Priced *, Launch #)
• 02/24 $8B #AbbVie $1.5B 2Y +33, $750M 2Y SOFR+48, $1.25B 5Y +53, $1.25B 7Y +63, $1.5B 10Y +73, $1.25B 30Y +88, $500M 40Y +98. 
• 02/24 $3.5B *CADES 7Y SOFR+65
• 02/24 $2B *AfDB 5Y SOFR+32
• 02/24 $1.3B WESCO 5NC2, 8NC3
• 02/24 $1B #MetLife 30NC10 5.85%
• 02/24 $1.25B *Kommininvest 2.5Y SOFR+25
• 02/24 $650M Wyndham Hotels 7NC3 5.625%
• 02/24 $500M Kommunalbanken 5Y SOFR+34
• 02/24 $Benchmark Virginia Electric 10Y, 30Y
• 02/24 $Benchmark SMFG 15NC10 +130
• 02/24 $Benchmark Texas Capital 6NC5 +170
• 02/24 $Benchmark Prologis Targeted US 7Y +90
• 02/24 $Benchmark Omnicom dual-FX investor calls
• 02/24 $Benchmark SoCal Edison 3Y tap +75, 7Y +103
• 02/24 $Benchmark Jacobs Solutions 5Y +115a, 10Y +135a
• 02/24 $Benchmark CenterPoint Energy Houston 10Y +112a

0NJ6 96.60 put vs SFIJ6 96.60 put, paper buys the front and receives 0.5 and 0.25 in 16k total
 

• The Dollar index has held a relatively contained range on Tuesday, with some initial strength dissipating through US trade. Japanese yen underperformance has remained the key characteristic across FX markets following the report of PM Takaichi disapproving of the BOJ’s hiking intentions. This dynamic has led the likes of GBPJPY and NZDJPY to post near 1% advances on the session, while the EM FX basket has enjoyed the more constructive price action for the major equity benchmarks.
• Notably, this morning’s high in USDJPY (156.28) closely matched the initial resistance level at 156.29 (Feb 10 high) before spot has then consolidated back towards current levels of 155.65 as we approach the APAC crossover. A continuation higher would highlight a stronger reversal and open 157.76, the Feb 9 high.
• Late GBP strength was notable in the lead up to the WMR fix, and while the moves coincided with BOE MPC members testifying before the Treasury Select Committee, there were no new developments on the monetary policy front.
• Most notably, downside momentum for EURGBP looks to have accelerated below a collection of daily low prints from the past few sessions, prompting a fresh one-week low for the cross at 0.8708, matching initial support at the 20-day EMA.
• Elsewhere, USDCAD has continued to respect and subsequently consolidate below 1.3725, key pivot resistance, while EURCHF also operates within 25 pips of the 0.9095 cycle lows.
• Wednesday’s calendar is highlighted by Australian January CPI and President Trump’s State of the Union address. Final Eurozone inflation prints and Fed speakers are then scheduled.