FED: US TSY 10Y NOTE AUCTION: HIGH YLD 4.683%; ALLOTMENT 65.27%

• Further greenback demand seen in the aftermath of the Waller comments, once again most notable for spot gold which extends its decline to 3% and to a session low of $3991/oz. We are approaching a notable cluster of lows down here, and a daily close sub $4k would be the lowest since November 2025.
• In the FX majors, the price action remains a little uninspiring, but USDCHF did briefly match the cycle highs at 0.8140. The likes of AUD and SEK have seen some further weakness alongside broader risk sentiment being impacted, which places them towards the bottom of the G10 leaderboard.
• USDJPY only crawling higher, but we have extended the bounce from Friday’s lows to 0.72% and trade within 40 pips of the cycle highs at 162.84. 

Monday's Europe rates/bond options flow included:

• IKQ6 119.00/119.50 call spread 4K given at 3.
• ERU6 97.4375/97.50 call spread vs ERZ6 97.375/97.4375 call spread, paper pays 1.0 for the Z6 spread in 10k
• 0RU6 97.62 calls paper paid 1.75 on 5K
• SFIU6 96.50/96.25 put spread 15K sold down from 24.5 to 24.25
• SFIU6 96.35/96.25 put spread 6.K given at 9.5
• SFIX6 96.15/96.20/96.25/96.30 call condor paper paid 1.5 on 5K
• SFIZ6 96.30 puts paper paid 42.5 for 6k
• SFIH7 96.05/15/20/30 call condor paper paid 1.5 on 2.5K
• SFIH7 96.15/96.25 call spread paper paid 3.5 on 8.8K
  
  
   

• 16,000 TYQ6 109.5 puts, checking price
• 12,000 FVU6 105.25 puts, 9 ref 106-10