SONIA OPTIONS: SFIM6 96.70/96.85/96.90/97.05 Call Condor Lifted

Natixis recommend longs in U.S. 5-Year ZCS, noting that their economics team sees “2025 core PCE inflation at 3% and above, and a Fed cutting into still-sticky inflation, which could increase demand for inflation hedges heading into 2026. We have been watching for a retracement for the past several months, and with the recent declines find levels approaching 2.50% attractive”.

Expect to see more issuance from banks as they kick off the latest earnings cycle. Aside from Goldman Sachs, Wells Fargo, JPMorgan and Citigroup have announced this morning.

• Date $MM Issuer (Priced *, Launch #)
• 10/14 $Benchmark Goldman Sachs 5pt
• 10/14 $Benchmark KEB Hana Bank 3Y SOFR+95a, 5Y  +80a
• 10/14 $3.2B Terawulf 5NC2 investor calls

• MNI: CANADIAN AUG BUILDING PERMITS -1.2% MOM
• CANADA RESIDENTIAL BUILDING PERMITS -2.4% MOM; NON-RESIDENTIAL +0.8% MOM