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BLOCK, 10Y Put Sale


Reverse Repo Operation, New Record High

US TSYS: Tsys drew support from the Chinese statement re: the recent U.S.-China
trade talks, with markets inferring that no major headway was made during the
3-day sit-down. Bull steepening has been the theme in early Asia-Pacific trade,
with U.S. equity index futures lower on the day. Post-Fed mins curve steepening
may have been helped by the use of the following phrase in the release "several
participants noted that a portfolio of holdings weighted toward shorter
maturities would provide greater flexibility to lengthen maturity if warranted
by an economic downturn." Fed Chair Powell headlines a smattering of Fedspeak
Thursday. Space trades back from best levels last with risk-off move lacking
follow through. U.S. gov't shutdown matters continue after U.S. President Trump
stormed out of the latest cross-party leadership meeting.
- White and red Eurodollar contracts trade unch.-4.0 ticks higher, on decent
volume. Early focus fell on buyers in EDU9. Options trades of note: 2EH9
97.250/97.125 put spread paper paid 0-015 on 5750, EDZ9
96.875/96.750/96.625/96.500 Put Condor paper paid 0-01 on 5.0K.
- T-Notes last 121.31, U.S. 10-Year cash Tsy yields last 2.692%.
MNI London Bureau | +44 0203-865-3809 |