FX Action: USD-CAD topped out at trend highs FX Action: USD-CAD topped out at trend highs of 1.2476 in London dealings, before trading a narrow range into the North American open. The pairing has eased back into 1.2415, with selling coming on the back of better than a $1 rally in WTI crude prices. Good domestic bidding interest reported into the 1.2400 level, and a fading Wall Street however, has seen USD-CAD lifted back over 1.2440.
Treasury Option Action: selling of volatility at the long-end Treasury Option Action: selling of volatility at the long-end has been in vogue to start the week, according to sources. This has sent implied volatility on March 10s from 6.60% on Friday to 6.40% currently. But there was also a 3k purchase of March 129.5 straddles (vol). On bond futures there was a bearish sale of 5k in March 154/155 call spreads too. March 10-year futures are 5-ticks lower near 129-165 compared to their 130-16 to 129-16 range on Globex.