US CREDIT SUPPLY: UBS $Benchmark Debt Offering in 5 Parts FV

Well prior to the latest support in underlying futures, paper has been buying various limited upside call structures targeting more than currently projected in rate cuts by year end: latest vs. early morning (*) levels: Sep'25 steady  at -21.1bp, Oct'25 at -35.1bp (-34.9bp), Dec'25 at -55.1bp (-54.1bp), Jan'26 at -66.1bp (-65.1bp).

• Recent scale buyer picks up 25,000 SFRZ5 96.18/96.31/96.50/96.62 call condors, 3.0 ref 96.205
• Earlier:
• 1,400 SFRZ5 96.25/96.37/96.50/96.62 call condors ref 96.21
• Even more dovish: 4,500 SFRZ5 96.25/96.50/96.75/97.00 call condors, 6.0 ref 96.21
• Pick-up in volumes that have been rather muted otherwise ahead today's July FOMC minutes release (1400ET) and of course the annual economic symposium in Jackson Hole this Friday with Chairman Powell discussing his economic outlook at 1000ET - likely to be at odds with current administration's desire to cut rates by over 3 full points to 1%.

• +20,000 SFRU5 95.9025, post time offer at 1003:04ET.
• The Sep'25 contract trades 95.9025 last (+0.000) vs. 95.895 low.

Riksbank Governor Erik Thedeen talks to MNI about Jackson Hole, precautionary saving and the reduced impact of easing. On MNI Policy MainWire now, for more details please contact sales@marketnews.com