OPTIONS: Mixed Trade Pre/Post BOE
Thursday's Europe rates/bond options flow included:
- DUF6 107.10/107.00/106.90p ladder, bought for 1.75 in 2.5k
- DUH6 107.50c, bought for 6 in 3k
- SFIX5 96.30/96.35/96.40/96.45c condor, bought for 0.5 in 4k (post-BOE decision)
- SFIZ5 96.00/96.10/96.20/96.30c condor, sold at 4.75 in 2k
- SFIZ5 96.20/96.25/96.30c fly, bought for 1.25 and 1.5 in 7k (post-BOE decision)
- SFIH6 96.50/96.60cs, sold at 3 in 22.5k total (post-BOE decision)
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PIPELINE: Corporate Bond Update: $1.15B TD Synnex 2Pt Launched
$7.85B total to price Tuesday:
- Date $MM Issuer (Priced *, Launch #)
- 10/07 $2.5B *Bank of England 5Y +8a
- 10/07 $1.75B *CPPIB 3Y SOFR+39
- 10/07 $1.75B #Angola $1B +5Y 9.25%, $750M 10Y 10.125%
- 10/07 $1.15B #TD Synnex $550M +3Y +75, $600M 10Y +118
- 10/07 $700M *Türkiye Garanti Bankası 10.5NC5.5 7.625%
GBPUSD TECHS: Short-Term Bear Cycle Still In Play
- RES 4: 1.3789 High Jul 1 and key resistance
- RES 3: 1.3726 High Sep 17
- RES 2: 1.3661 High Sep 18
- RES 1: 1.3537 High Sep 23 and a pivot level
- PRICE: 1.3439 @ 16:37 BST Oct 7
- SUP 1: 1.3324 Low Sep 25 and the bear trigger
- SUP 2: 1.3282 Low Aug 6
- SUP 3: 1.3254 Low Aug 4
- SUP 4: 1.3144 38.2% retracement of the Jan 13 - Jul 1 bull cycle
Short-term bearish conditions in GBPUSD remain in place - for now. Initial key resistance to watch is unchanged at 1.3537, the Sep 23 high and a near-term pivot level. Clearance of this hurdle would signal a potential reversal. Recent weakness resulted in the break of a trendline drawn from the Aug 1 low. A support at 1.3333, the Sep 3 low, has been pierced. A clear breach of this support would open 1.3282, the Aug 6 low.
US: FED Reverse Repo Operation - New Multi Year Low
RRP usage retreats to new multi-year low of $4.622B (lowest level since early April 2021) with 14 counterparties this afternoon from $21.776B on Monday. Compares to this year's high usage of $460.731B on June 30.
