OPTIONS: More Plays For Unch BOE This Year

Wednesday's Europe rates/bond options flow included:

• ERM6 97.75/97.68/97.56/97.43p Condor, bought for 2.25 in 20k
• ERZ6 98.12/98.00/97.375/97.25p condor, sold at 5.5 in 36k (suggest closing)

• RES 4: 112-16   61.8% retracement of the Mar 2 - 27 bear leg 
• RES 3: 112-07   High Mar 18
• RES 2: 111-31   50.0% retracement of the Mar 2 - 27 bear leg 
• RES 1: 111-27+ High Apr 17
• PRICE:‌‌ 110-15+  @ 17:27 BST Apr 29
• SUP 1: 110-12+ Low Apr 29
• SUP 2: 109-24   Low Mar 27 and the bear trigger
• SUP 3: 109-22+ 1.764 proj of the Mar 10 - 13 - 18 price swing
• SUP 4: 109-12   2.000 proj of the Mar 10 - 13 - 18 price swing

Treasuries have opened a decent gap with last week’s highs, leaving key short-term resistance defined at 111-27+, the Apr 17 high. Support at 110-16, the Apr 2 low, has broken - a bearish development that exposes the bear trigger of 109-24. Any renewed rally needs to push prices through 111-27+, before 111-31, the 50% retracement for the Iran War bear leg, can be tested. Clearance of this retracement level would strengthen any bullish theme. 

• Futures back under pressure after drawing some short covering in lead-up to this afternoon's FOMC policy annc.
• -35,000 FVM6 sold from 107-24 to -23.25 last few minutes, still off midday low of 107-22.5 however.