EUR Vol: Bid again amid UK and US moves

Bid again amid UK and US moves
Euro implieds stayed bid for a third consecutive session amid uncertainties from latest developments in the UK and US. The session began with Bunds under pressure after UK inflation printed worse-than-expected and sold off again later in the session amid Fed Chair Powell’s testimony to US Congress.

“There’s not been a great deal going through that we’ve seen,” reported one euro vol trader earlier, “The UK data was the latest wake-up that inflation might not be going down as quickly as central banks hope,” he felt.

In gamma, 3m10y has finished up 1.3 at 89.6nvol and has rebounded around 6 normals over the past three sessions after marking fresh 2023 lows at the end of last week.

In the top left, 1y1y was up +0.2 at 105.7nvol, “It’s still at pretty low levels and there’s not been much trading,” one trader observed.

For euro option trades on the SDR see here and for volumes please see here. Note that the Total Derivatives SDR now shows broker/platform information for each trade, where available.

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