Eurodollar Futures Weekly........>

US EURODLR FUTURES: Eurodollar Futures Weekly Update: By and large the past week

has seen rates markets continue to rally due to familiar domestic and global

risk metrics: US/China trade issues (forget the ineffectual 10% tariff delay to

Dec 15 anncd Tue by Pres Trump), global economic slow-down and recession

concerns. "Yield curve inversion" likely to become common household term soon. -

After brief inversion for first time since mid-2007, the 3M10Y Tsy yild curve

has been consistently inverted since mid-May'19. Gaining broader attn: inversion

of 2Y10Y yld curve to -1.917% early Wed, first time since May'07.

- Despite brief risk-on moments, Eurodlr futures remain well bid for wk: lead

quarterly EDU9 gained 0.025 to 98.005, EDZ9 through EDM0 are 0.075-0.105 higher.

Compared to wk-ago lvls, Reds (U0-M1) through Golds (EDU3-EDM4) 0.090-0.120

higher (after gaining 0.160-0.180 in prior wk).

- As a result, rate cut probability remains high for rest of year: a 25bps cut

at the Sep 18 FOMC a foregone conclusion while 50bps cut stands around 55% vs.

35% a week ago, while the Oct 30 FOMC is pricing in near certainty of two 25bps

cuts, and a third 25bp cut at the Dec 11 FOMC at 73% vs. 45% a week ago.