Latest block trades lodged at 09:05:26 London/04:05:26 NY:

• FVU4 7,300 lots blocked at 106-07+, looks like a buyer.
• UXYU4 7,000 lots blocked at 112-16+, looks like a seller.
• WNU4 1,580 lots blocked at 123-01, looks like a buyer.
• Would point to a belly seller of the FV/UXY/WN fly.
• This comes with the 5-/10-/30-Year cash Tsy butterfly trading at fresh multi-week highs (in closing terms).
• The position looks for a continuation of that move.
• The block follows a virtually identically sized trade that was blocked around this time yesterday, which also looked like a belly seller of the fly.
• A reminder that we have seen several rounds of TU/FV/UXY fly block trades during Asia/early London hours in recent months.
• This could be the same account, with a new position seemingly building in the FV/UXY/WN fly (over $1.2mn DV01 belly equivalent over the two trades).

Fig. 1: U.S. 5-/10-/30-Year Butterfly (bp)

Source: MNI - Market News/Bloomberg