EU CONSUMER STAPLES: Scandinavian Tobacco: 2Q Results
Aug-27 16:44
(STGDC; Baa3/NR) 2Q EBITDA margin comes in weak and is half on gross margin weakness, half rising s...
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SOFR OPTIONS: Midday Two-Way Trade
Jul-28 16:36
- -20,000 SFRZ5 95.25/95.62/96.12 call flys, 6.5
- -2,000 0QZ5 96.75 straddles 31.0 over 0QH6 97.12 calls ref 96.75/0.35%
US DATA: Mixed Ability Of Firms To Pass Cost Increases On In Dallas Fed District
Jul-28 16:18
- The improvement in the Dallas Fed manufacturing survey for July came despite an apparent relative re-compression in margins although this in turn was countered by the opposite when looking six months out.
- The prices paid index remained at an elevated 41.7 after 43.0 in June (average of 43.5 since Apr 2 reciprocal tariff announcements, 30 in 1Q25 and 21 in 2024) but prices received dropped from 26.1 to 11.1 for the lowest since March (average 16.8 since Apr, 7 in 1Q25 and 7 in 2024).
- Countering this, the six-months ahead measures saw a marked increase in expectations for prices received with its highest since April 2022. The 43.2 compares with an average of 32 since April, 35 in 1Q25 and 21 in 2024.
- That said, whilst this uptick in expected prices received was a marked rise on the month, it’s only really catching up with relative levels seen in other regional Fed manufacturing surveys – see charts.
- Of course, whilst a particularly timely survey with a collection period of Jul 15-23, it still predates the US-EU deal made over the weekend with a 15% tariff rate on most EU goods (with the EU being the US’s largest source of imports).
US TSYS/SUPPLY: Preview 5Y Auction
Jul-28 16:15
- Tsy futures remain near mid-morning lows (FVU5 -3.5 at 108-04.25 vs. 108-03.5; TYU5 currently -6.5 at 110-25 vs. 110-24.5 low) ahead of the $70B 5Y note auction (91282CNN7) at 1300ET, WI is currently running at 3.981%, 10.2bp cheap to last month's tail.
- June auction recap: Tsy futures retreated slightly (FVU5 to 108-20.75 from 108-21.5) after the $70B 5Y note auction (91282CNK3) tailed: 3.879% high yield vs. 3.872% WI; 2.36x bid-to-cover vs. 2.39x prior (5 auction average).
- Peripheral stats: Indirect take-up retreated to 64.68% from 78.4% prior, directs bounced to 24.44% vs. 12.4% prior (5 auction low), primary dealer take-up at 10.88% vs. 9.2% prior.
