FINANCIALS: UBS Faces Additional Capital Requirements

• Estoxx futures has now closed the Opening gap down to 5209.00, not a Tech level.
• This latest push lower helps Bund print a new intraday high, but no real trigger for the move, mostly some order related flow, and a continuation since Bond went bid post the French Auctions this Morning.
• Support in VGM5 is at 5178.00, this is only Yesterday's low.

Large Weekly 5yr downside Option:

• FVA (weekly, expiry 12th May) 107.25p, bought for 00+ in ~42.4k.

Gilts hold the bulk of the rally detailed earlier, backing away from session highs over the last couple of hours after the post-auction momentum stalled.

• Futures have traded as high as 93.32, well shy of next resistance at the May 2 high (93.93). Last 93.24.
• Yields 2-5bp lower on the day, ~1bp off session lows, flattening bias maintained, last week’s yield lows intact/unchallenged across the curve.
• 2s10s ~13bp below closing cycle highs, 5s30s ~8bp below closing cycle highs.
• Spread vs. Bunds continues to oscillate in the 195-200bp closing range witnessed over the last 3 sessions
• Domestic headline flow remains limited, with external cues set to dominate between now and tomorrow’s BoE decision.