US TSY OPTIONS: TUU6 103.250 Calls Blocked

• USD:The recent lack of conviction in G10 FX markets has once again been on show Monday, as the early greenback bid tied to further strikes in Iran reverses across the European morning. This turn lower has been somewhat assisted by reports suggesting that talks with mediators remain open despite the escalation, leaving the DXY marginally in the red, around 100.85.
• JPY: Despite the greenback pullback, USDJPY remains 0.25% higher on the session at 162.10. This is in part reflective of a Reuters sources story which stated that GPIF has no immediate plans to change its target asset allocations – tempering expectations following Finance Minister Katayama’s comments last week. A bull cycle in USDJPY remains intact and the key short-term resistance and the bull trigger to watch is 162.84, the Jun 1 high.
• AUD/NZD: The most notable move across the G10 has been the extension lower for AUDNZD. On top of the hawkishly interpreted RBNZ hike last week, we flagged a trendline break last week that may have added to the downside momentum. Positioning dynamics are also likely a factor weighing on the cross, as spot pierces below 1.20 this morning. This narrows the gap to the early June lows at 1.1984, and should the move really start to accelerate, 1.1799 is an obvious target further out.
• EUR/GBP: Separately, after near enough matching initial support at 0.8508 on Friday and overnight, EURGBP has bounced back towards 0.8540 this morning. The move threatens to end the streak of lower session lows for the cross, although bearish conditions remain firmly intact, and initial firm resistance is at 0.8583, the 20-day EMA.

• Norwegian manufacturing industrial production rose 0.7% M/M in May, helping 3m/3m growth up to an 11-month high of 1.5% (vs 0.5% prior). Sequential growth was seen in both petroleum-related and non-petroleum related manufacturing industries, with the latter seeing 3m/3m growth recover to 1.0% (vs 0.2% in April, 0.9% in March).
• Headline IP fell 1.0% M/M, and 1.3% 3m/3m (vs -0.4% prior), owing to a 7.2% M/M fall in crude extraction.
• Services production – which was released last week on schedule – saw 1.0% M/M growth in May, with 3m/3m growth rising to 3.1% (vs 2.5% prior). Sequential growth was seen across major categories.
• Norwegian market participants will be hoping that May CPI-ATE is released this week. Technical issues at the stats office prevented release last Friday. Headline inflation was significantly below consensus and Norges Bank forecasts at 2.7% Y/Y, with analysts highlighting energy and food components as downside contributors.
• Analyst estimates we have seen place CPI-ATE at 2.8-3.0% Y/Y, which would be well below the 3.3% June MPR forecast. However, details remain important with focus on the extent to which this outturn was driven by volatile items or more underlying components. 

SFIH7 96.05/15/20/30 call condor paper paid 1.5 on 2.5K