OIL PRODUCTS: Oil Products Summary At European Close: Cracks Steady

• US TSY 52W AUCTION: NON-COMP BIDS $1.043 BLN FROM $48.000 BLN TOTAL

Gilts are off pullback lows, with an eye on wider moves in core global FI markets.

• Little of note since this morning’s data/auction combination when it comes to UK news flow.
• Futures +12 at 91.62.
• The 20-DMA (91.81) has been breached on a couple of occasions but may be intact come the close.
• Yields 6bp lower to 7.5bp higher, notable twist steepening on the day.
• April 10 low in 10s untouched.
• Weakness in the long end lacks a clear driver, given the lack of news/technical breaks in benchmark yields/curves.
• 10- & 30-Year Tsys now outperform gilts, with the previously covered SLR reform discussions at the U.S. Tsy helping promote that move (note that spreads were already moving that way ahead of the headline).
• Outperformance vs. Bunds, at least intraday, is proving stickier.
• BoE-dated OIS continuing to show ~23bp of cuts for next month, although pricing of cuts through year-end has deepened to ~81bp vs. the ~75bp seen late yesterday.
• SONIA futures flat to +9.5, last week’s highs intact/untouched.
• UK CPI data due tomorrow, click for our full preview.

Two-way call spd interest and put structure selling since the open. Underlying futures climbing off lows, Whites lagging; projected rate hike pricing mixed vs. this morning's levels (*) as follows: May'25 at -4.4bp (-5bp), Jun'25 at -20.7bp (-20.2bp), Jul'25 at -38.9bp (-38.4bp), Sep'25 -57.4bp (-56.7bp).

• Block, +5,000 SFRM5 96.12/96.37 call spds, 3.25 ref 95.93
• -5,000 0QU5 96.62 puts, 29.0 vs 96.74/0.42%
• -5,000 3QU5 95.00 puts, 4.0 vs. 96.31/.06%
• +5,000 0QM5 95.25/3QM 95.12 put spds, 1.5 net/3QM over
• -10,000 SFRN5 96.25 calls, 24-23.5 ref 96.27
• +40,000 SFRZ5 98.00/99.00 call spds 5.0 vs. 96.52 to -.50/0.05%