OIL PRODUCTS: Oil Products Summary At European Close: Diesel Cracks Soften

• +40,000 TYU5 112.5 calls, 2, total volume over 52,700, open interest at 163,678 coming into the session.
• Sep'25 options expire Friday

• Greenback picking up into the WMR fix, helping trigger fresh daily lows across EUR/USD, GBP/USD and new daily highs for USD/CAD and USD/JPY.
• USD strength being driven partly by the run higher in the US curve - but also a sizeable uptick in EUR futures at 1047ET/1547BST. ~1000 contracts traded inside two minutes for a cash equivalent of ~$150mln. While the last few minutes have seen activity pick up, overall volumes on the day are very low: EUR futures are close to 30% below average for this time of day.
• While the USD's benefiting from the higher US curve, it's the opposite for GBP. Which is slipping despite a further backtrack in BOE rate cut pricing for 2025 (year-end implied rates now ~3.85%, or pricing just 12bps of rate cuts over the next three meetings).
• No specific headlines or newsflow behind the USD rally in recent trade - with low volumes and light liquidity the suspected driver. We mentioned earlier today the preference for markets to adopt a more neutral setting into Jackson Hole on Friday - evident in last week's CFTC data showing the net short trimmed off multi-year lows.

The DMO has released the agenda for the consultation to be held Tuesday next week ahead of the release of the Oct-Dec auction calendar (on Friday 29 August at 7:30BST).

• Syndications: A new conventional 15-year gilt in October and a linker (new or existing) in November.
• The DMO has also raised the possibility of dual-tranche syndications (which are not currently held). These are not planned for FQ3, but could be introduced in the future.
• Short auctions (6 auctions): Launch and reopen at least once both a new 3-year gilt and new 5-year gilt.
• Medium auctions (4 auctions): The new 10-year Oct-35 gilt (which will be launched via syndication in the W/C 1 September) to be reopened at least twice in the quarter. The DMO is also welcoming views on a new 7-year gilt.
• Long auctions (2 auctions): Including a reopening of the
• Linker auctions (4 auctions): All existing.
• PGTs (5): 1 short, 1 medium, 1 linker and 2 other conventional (without maturity guidance).
• The next consultation will be held on Monday 24 November, subject to the timing of the Budget.