US CREDIT SUPPLY: Public Service Co of OK (AEP): $Benchmark; 7Y, 30Y – FV

• Summary of some large short term weekly options since the open, mostly downside puts with a large 10Y wk3 call buyer  recently reported.
• Projected rate hike pricing gaining slightly vs. late Friday levels (*): Jul'26 at +8.7bp (+8.4bp), Sep'26 at +22.6bp (+21.6bp), Oct'26 at +28.7bp (+27.4bp), Dec'26 +38.6bp (+37.1bp).
  • over +31,900 wk3 TY 109.25 calls, 8 ref 108-28.5
  • over 20,000 wk3 TY 109 puts, 20 ref 108-30
  • 18,800 Thursday weekly TY 109 puts, 20 ref 108-28.5 (exp 7/16)
  • +22,000 Tuesday weekly FV 106.5 puts, 10.5 ref 106-15, expiring tomorrow with current open interest of 6,106.
  • +22,000 wk3 TU 102.87 puts, 5.5
  • +8,000 wk3 TU 103.12/103.25 call spds, 1 vs. 102-29.87/0.10%
• Large non-weekly option flow since the open includes:
  • 20,000 TYQ6/TYU6 109 straddle spds, 39 net covered
  • 11,500 TUU6 103.37 calls, 4 ref 102-29.25
  • 20,000 FVQ6 106.25 puts, 11 ref 106-15.25

OI data points to fresh longs being set in gilt futures on Friday as the rally from Wednesday price lows extended further. Still, OI remains ~27K below all-time highs (last 1.3086mln) seen in late June after long cover/profit taking dominated in the pullback from the highs registered in that window.

• "Secular Stagnation" co-author Lukasz Rachel talks to MNI about AI and its impact on interest rates and growth.- On MNI Policy MainWire now, for more details please contact sales@marketnews.com