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In tandem with the step lower in GBP/USD at the open, the USD is rallying against all others - benefiting from the pretty aggressive move in longer-end yields. US 30y yields are within range of 5.0% for the first time since mid-July and that, compounded by the slippage in equities, is driving the USD here.

• As a result, GBP/USD is narrowing in on the Friday low, EUR/USD is through yesterday's lows and USD/JPY is closing in on clustered resistance between Y148.78-88, marking the Aug22 high and the 200-dma respectively.
• Move most observable against JPY and GBP here, with the impact of Gilt weakness and widening US-JN yield spreads making themselves be felt most keenly. UK DMP output price expectations data and retail sales could prove illustrative this week - but it's UK politics that will likely provide the clearer medium-term driver, as 30 year yields hit levels not seen in over 25 years today - pressuring the government headed into the Autumn budget - the date for which is yet to be set.

New 7-year Nov-32 BTP:

• Guidance: BTPS+10 Area. Benchmark: BTPS 3.25% 07/15/32
• Size: Benchmark. MNI pencils in E5-10bln (with risks skewed towards E7-8bln)
• Coupon: Semi-annual, act/act, short first

New 30-year Oct-55 BTP:

• Guidance: BTPS+9 Area. Benchmark: BTPS 4.3% 10/01/54
• Size: E5bln WNG.
• Coupon: Semi-annual, act/act, short first

Across both lines:

• Issuer: Italy Buoni Poliennali Del Tesoro (BTPS)
• Exp. Ratings: Baa3/BBB+/BBB
• Format: Reg S, dematerialized, 144A eligible
• Settlement: Sep 9, 2025 (t+5)
• Denoms: 1k x 1k
• Bookrunners: BBVA, Citi, DB (B&D), JPM, MS, Nomura
• Timing: May price today.

As per Bloomberg and MEF, with MNI colour added.

• Keep a close eye on Bund here, that 2.80% Yield level has moved up to 128.68.
• Immediate support is at 128.84, and looking at the chart the contract did print a 128.64 low on the 15th August, so that 128.68/128.64 will be the intial key level.
• Gilt is getting dragged on the Open, immediate Obvious support is at the 90.00 figure, testing right now.
• Next support to watch is at 89.80, this equates to 4.80%.
• A little surprising to see the Pound suddenly falling, in part a function of the Dollar bid as Yields edge higher, and best selling volume goes through on CME (see chart).