📝 We Have Seen Profit Taking In White EDs, FVs and TYs: UBS Strategy

A couple of block trades in FVU2 this morning and both have been buys, 2 clips of 5000x at 109-13.75 and 109-15.75 collectively around $450k DV01. Large increase in open interest in front end EDis and short bonds indicative of new shorts entering the market in the last couple of days; but our flows this morning have been similarly skewed, we have seen profit taking buying in white EDs, Ft's and TYs. Given the pace of the move in rates post CPI, it does make sense to lock in profits at current levels and see what the Fed do tonight. - UBS Strategy