So much for quiet summer.........>

US EURODLR FUTURES: So much for quiet summer trade, on/off again trade and

geopolitical risks buffeted Eurodollar futures this week. After simmering over

the weekend, trade tensions spurred a sharp risk-off rally Monday, S&P E-Mini

futures retreating 95 points (-3.24%) to 2826.5, while 10Y yields fell back to

November 2016 level of 1.7278% and the 3M10Y yield curve made new 12 year

inverted lows near -32.0 after topping +2.0 just two days prior.

- As a result of Mon's panic, lead quarterly Sep'19 futures traded 0.090 higher

as markets started pricing in 50bp rate cut chances at the next FOMC meeting on

Sep 18 with the probability rising to around 35%. Risk off tone cooled Tues as

equities staged a decent rebound, but dovish central bank moves from N Zealand,

India and Thailand kicked the risk-off tone into high gear again into Wed.

- On Fri, Trump said he'd "like to see Fed lower rates by a percentage point"

and that September talks with China could be cancelled.

- For the week: Lead quarterly EDU9 gained 0.065 to 97.990, EDZ9 through EDM0

are 0.130-0.160 higher. Compared to week-ago levels, Reds (U0-M1) through Golds

(EDU3-EDM4) 0.160-0.180 higher.