US TSY FUTURES: TU/UXY Steepener Blocked, Looks Like Stopping Out
Sep-13 09:13
Latest block trades lodged at 09:30:14 London/04:30:14 NY:
- TUZ4 8.8K lots blocked at 104-13, looks like a buyer.
- UXYZ4 3.7K lots blocked at 119-30, looks like a seller.
- Prevailing prices at the time of the block and subsequent movement on the 2s10s curve points to a TU/UXY steepener, DV01 ~$350K.
- A reminder that a flattener trade of the exact same size was blocked during the London morning on Thursday.
- We would suggest today’s block represents an unwind of that position, for a loss, with the spread moving to ~5bp vs. the ~1bp seen at the time of entry (entry and exit points circled in the chart below)
Fig. 1: U.S. 2-/10-Year Yield Curve (bp)
Source: MNI - Market News/Bloomberg
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EURIBOR OPTIONS: Risk Reversal
Aug-14 09:11
ERH5 97/98 RR, bought the call for 2.25 in 4k.
EUROZONE DATA: Industrial Production Disappoints With Weakness Driven by Ireland
Aug-14 09:02
Eurozone industrial production disappointed in June at -0.1% M/M in-line with MNI's tracking (vs 0.5% consensus, -0.9% revised prior from -0.6%). The annual reading was also weak printing -3.9% Y/Y (vs -2.7% consensus, -3.3% prior revised from -2.9%).
- The June monthly fall was driven by Ireland, which saw production fall 7.8% M/M after rising 5.4% M/M last month - making it the largest decline since January 2024, followed by Belgium which saw its steepest sequential deterioration since April 2023 printing -6.5% M/M.
- Of the 6 major eurozone members, Germany followed by France and Italy restrained the downside move. Germany industrial production rose 1.6% M/M (contributing around 0.6ppts to industrial production), while France and Italy edged up 0.7% and 0.5%.
- From a sectoral perspective, 3 of 5 sub-components fell. Intermediate goods fell again albeit at a slower pace of 1.5% M/M (vs -3.3% in May). Capital goods also declined 7.8% (vs -7.3% prior) - the steepest fall since February 2024, whilst durable goods edged down 2.1% (vs -5.0% last month).
- Meanwhile, energy production rose for the second consecutive month by 2.6% M/M (vs 0.5% prior) and non-durable consumer goods remained stable rising 0.1% M/M (vs 2.4% prior).
GOLD: Gold targets the all time high
Aug-14 09:01
- Worth keeping an eye on Gold, as the Precious metal firms higher, platinum is also seeing a push higher, while Silver and Platinum lags.
- The technical trend structure remains bullish for Gold, and investors are keeping an eye on the all time record high of 2483.73 printed in July.
- A clear break through, would open to the Psychological $2500.00 handle.
