USD Vol: Gamma, vega soften; 2y10y sees a bid; 5y SOFR caps

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Gamma and vega both softened today, amid lower underlying rates. Dealers appear content to hold onto vega for now, but some see lightening up soon, should recent gains erode. 2y10y has seen a decent bid, sources note. 5y SOFR caps trade. JP Morgan stays short gamma as market depth recovers.

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