SONIA: Ratio put spread

MBA composite mortgage applications continued to see another mild pullback as 30Y rates further stabilized around the 6.7% level. It masks new purchase applications at one of their highest levels in the past two years but activity is still subdued on a historical basis. 

• Composite applications dipped -1.6% (sa) last week after -2.0% the week prior and -6.2% before that, further chipping away at a 34% two-week increase in late Feb/early March.
• Once again, refis led the modest pullback (-5.6% after -5.3%) whilst new purchase applications saw their fifth consecutive weekly increase (most recently 1.5% after 0.7%).
• The 30Y conforming rate inched another 1bp lower to 6.70%, broadly consolidating around the 6.7% level for the past five weeks now having eased from a recent high of 7.09% in early January.
• It's a move that stoked a relatively modest uplift in activity when looking at broader trends, although activity is still subdued with new purchases at 61% of 2019 levels and refis at 41%. 

• SX5E (18/12/26) 4400/3400ps 1x2, bought for 53 in 2k.

The last time SX5E was trading below 4400 was over a year ago in early January 2024.

DSTA has announced it will be looking to sell E2.0-2.5bln of the 0.50% Jul-32 DSL (ISIN: NL0015000RP1) at its auction next Tuesday, April 8.