Treasury Option Action: bullish put selling Treasury Option Action: bullish put selling has been spotted over the course of the morning between data releases, with a sale of 2k in Aug 127 puts and another 5k sale in Jul 130.5/131.5 put spreads. Also reported was bullish small-lot "purchases of 1-week 141/142 call spreads" on bond futures, set to expire Friday. Sep 10s are 5.5-ticks firmer near 129-155 compared to a 129-245 to 129-06 range.
Euro$ interest rate options: bearish put spread demand Euro$ interest rate options: bearish put spread demand has been the main feature of early option trade in the short-dated rate contracts, with sources reporting "purchases totaling 100k in Green Sep 85/87 put spreads" by a large money center bank. The Sep 2013 contract is flat near 99.695, without much change further out the curve.
BofA/Merrill's Japanese rates strategist holds analyst/industry conference call Japanese Rates Strategist Shogo Fujita discusses the market reaction to the recent announcements from the Bank of Japan, as well as asset allocation shifts by Japan's largest portfolio investors on an Analyst/Industry conference call to be held on June 5 at 9 am.