LOOK AHEAD: Wednesday/Thursday Calendar: Veterans Day
Nov-11 11:26
Very quiet docket today due to Veterans Day federal holiday, no Fed speakers or Tsy auctions either ...
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UK: "*BREXIT DEAL LEFT UK WORSE OFF, CAN DO MUCH BETTER: PM SPOKESMAN" bbg
Oct-12 11:26
"*BREXIT DEAL LEFT UK WORSE OFF, CAN DO MUCH BETTER: PM SPOKESMAN" bbg
"*UK PM SPOKESMAN: RUSSIA TRIED TO INFLUENCE BREXIT VOTE, FAILED"
GBP SWAPS: 10s/30s SONIA Corrects Toward Fair Value
Oct-12 11:04
- The 10s/30s SONIA curve remains very flat, sitting only around 7bp or so off last month’s lows (the flattest levels since March 2025). However, this relatively modest steepening has taken the spread back much closer to model-implied fair value based on a linear regression against intermediate BoE policy paths - proxied by the 1y1y rate.
- 10s/30s SONIA has exhibited a strong inverse relationship with 1y1y this year. With the 1y1y rate having recently edged higher back above 4.90%, the structural flattening pressure remains clear. Visibility around the evolution of energy prices is limited, although we have noted that the directionality of 1y1y to rolling front Brent futures has weakened recently.
EQUITY OPTIONS: Large Estoxx Put Option
Oct-12 11:03
Large Estoxx Option, unconfirmed buyer:
- SX5E (18th Dec) 5600p, traded for 39.5 in 55k.
