EM LATAM CREDIT: Vista Energy Withdraws Previous 2025 Guidance: Acquisition

A spokesperson for PM Sir Keir Starmer, when asked about the high-profile leak of comms from a Signal group involving senior US gov't officials discussing the bombing of Houthi rebels in Yemen, says that the UK "will continue to build defence and security relations with the US," and "is confident UK intelligence shared with the US is secure". 

• Adds that the UK "will continue to work with the US on regional security in the Middle East", and that the UK-US security relationship "will continue for many years to come."
• Spoaking in a House of Commons Defence Select committee hearing this morning, Parliamentary Under-Secretary of State for the Armed Forces Luke Pollard said, when asked what would happen if there was a similar information breach in the UK, "If anyone was sharing information in our system, that were sharing it outside of the authorised systems that allow data sharing, certainly we would ... have clear procedures in place for how we would address those", indicating that it would result in disciplinary action and possible dismissal. Pollard added "we've got high confidence that the measures that we have got with our allies, including the United States, remain intact."

• Kingdom of Belgium USD 10-year Benchmark – IPT @ MS+67A $$$
• Size: USD benchmark
• Maturity: 2 April 2035 (10Y)
• Settlement: 2 April 2025 (T+5)
• Coupon: Fixed, SA 30/360
• Spread: MS+67bps Area (currently equivalent to ~CT10+24.8 bps)
• Bookrunners: CITI(DM/B&D)/JPM/MS
• ISINs: RegS: BE[] / 144A: BE[]
• Timing: Taking IOIs, tomorrow’s business

Heavy SOFR put volume reported in the leadup to the NY session, large buying in Sep'25 95.50 midcurve put recently. Tsy option volumes more muted but leaning towards low delta puts & spds with underlying futures trading lower, curves bear steepening. Projected rate cuts through mid-2025 cool slightly vs. late Monday levels (*) as follows: May'25 at -3.9bp, Jun'25 at -16.3bp (-16.7bp), Jul'25 at -27bp (-28bp), Sep'25 -41.5bp (-42.7bp).

• SOFR Options:
  • over 64,600 0QU5 95.50 puts, 4.5 ref 96.42 (45.5k piece followed by smaller lots)
  • 6,000 SFRJ5 95.75 puts ref 95.865
  • 2,000 SFRZ5 95.62/95.87/96.06 broken put flys ref 96.23
  • Block, 4,000 SFRU5/SFRZ5 95.68/95.81 put spd spds, 0.25 adds to 23k on Monday
  • 4,000 SFRM5 96.00/96.12/96.37/96.50 3x2x2x2 call condors ref 95.855
  • 8,000 SFRM5 95.62/95.75 put spds ref 95.855
  • 3,000 SFRZ5 96.62/97.12 call spds ref 96.23
  • 2,000 0QK5 95.75/96.00 put spds ref 96.425
  • 2,000 SFRN5 95.62/95.75 put spds ref 96.09
• Treasury Options:
  • 4,600 TYM5 107.5/109 3x2 put spds ref 110-11
  • 2,000 TUK5 103.12 puts ref 103-11
  • 1,800 TYK5 109/109.5 put spds
  • over 5,200 TYK5 112.5 calls, 13 ref 110-11
  • 1,200 TYM5 113/115/117 call flys, ref 110-12