### POV: RATE SALE AS GLOBAL.....>

US EURODLR OPTIONS: ### POV: RATE SALE AS GLOBAL RISKS REMAIN - Tsy ylds have

rebounded just a week after Bond yld fell to a new all-time low. Currently 10YY

is appr 1.7195%, 30YY  2.1999%. Traders searching for answers behind recent

moves and how to be tactically positioned going into late summer. 

- US/China trade war is widely blamed for triggering a global economic slow-down

and first "mid-cycle" rate cut from the Fed in 12 years. Hampered by thin late

summer participation, an additional factor was strong overseas buying of Tsys

while Japanese accts adding "most US sovereign debt since July '16" BMO

strategists noted, citing Japan MoF data. Not a buyers strike, but support from

foreign accts appears to have run it's course, while a massive pick-up in corp

debt issuance (Jul: $89.975B, Sep over $90B in under 2 wks) adding to rout in

rates.

- Despite risk-on headlines (sacking of Bolton and China vowing to buy U.S.

goods), traders should discount any calming effect on tensions after Bolton

fired, and REALLY discount any positive talk of a quick China trade resolution.

Nevertheless, many tactical traders remain short delta but long gamma.