US TSYS: CHINA TARGETS U.S. OIL PRODUCTS IN RETALIATION

US TSY SUMMARY: Tsys trading mixed into the bell, tight range with light volume

(TYU 880k), curves mixed; $26B 10Y Tsy auction finished with a yld of 2.960%

came in line with the WI of 2.960%at the deadline, Tsy saw a slight uptick but

retracted; -US$/CAD rose following rpts that Saudi Arabia are said to sell off

their Canadian assets, CAD weakened on the news

-West Texas Crude weaker (WTI -2.30, 66.87) following China's announcement it

will place a 25% tariff on imports of U.S. refined products beginning Aug 23;

incl. diesel, gasoline, & LPG's according to Bloomberg

-ITALY: BTP ylds climbed on comments by Deputy PM Di Maio, who vows to use

hardline tactics to win concessions from the EU on the upcoming budget. 2-Yr BTP

ylds faring worst, up 6bps at 0.969%, with spds over Germany widening 7.6bps at

156.5bps as Bunds rise

-US$/Yen (JPY -0.41, 110.97, 111.44H/110.84L); DXY weaker (-0.120, 95.066);

Equities higher (emini +2.00, 2,861.75); Gold climbing (XAU +2.73, 1213.69); Tsy

cash/ylds: 2Y 99-29 (2.672%), 5Y 99-19 (2.836%), 10Y 99-06 (2.969%), 30Y 100-04

(3.118%).

US TSY FUTURES CLOSE: Trading mixed with the long end slightly outperforming the

short end, tight range with light volume (TYU 840k), Curves steeper; update:

* 2s10s -0.375, 29.546 (28.801L/30.851H);

* 2s30s -0.166, 44.293 (43.491L/45.712H);

* 5s30s +0.344, 27.872 (27.043L/28.917H);

Current futures levels:

* Sep Ultra bonds futures up 01/32 at 155-31 (155-19L/156-11H)

* Sep 30-yr Bond futures up 01/32 at 142-20 (142-11L/142-29H)

* Sep 10-yr futures up 01/32 at 119-16 (119-12.5L/119-19H)

* Sep 5-yr futures up 0.5/32 at 113-05.75 (113-4.5L/113-07.75H)

* Sep 2-yr futures down 0.25/32 at 105-22.25 (105-22.25L/105-23.25H)

US EURODOLLAR FUTURES CLOSE: Trading slightly higher near the top of a tight

range, parallel shift across the strip. Current White pack (Sep'18-Jun'19):

* Sep'18 +0.015 at 97.600

* Dec'18 +0.015 at 97.345

* Jun'19 +0.015 at 97.190

* Jun'19 +0.015 at 97.075

* Red pack (Sep'19-Jun'20) +0.015-0.010

* Green pack (Sep'20-Jun'21) +0.015-0.010

* Blue pack (Sep'21-Jun'21) +0.020-0.010

* Gold pack (Sep'22-Jun'22) +0.020-0.01

TECHNICALS: 

US DOLLAR LIBOR: Latest settles,

* O/N +0.0029 to 1.9163% (+0.0007/wk)

* 1 Month -0.0077 to 2.0634% (-0.0187/wk)

* 3 Month -0.0009 to 2.3405% (-0.0077/wk)

* 6 Month -0.0054 to 2.5170% (-0.0166/wk)

* 1 Year +0.0035 to 2.8278% (-0.0043/wk

US TSYS: *** /REPO REFERENCE RATES: (rate, volume)

* Secured Overnight Financing Rate (SOFR): 1.87% vs. 1.86% prior, $732B

* Broad General Collateral Rate (BGCR): 1.86% vs. 1.84% prior, $387B

* Tri-Party General Collateral Rate (TGCR): 1.86% vs. 1.84% prior, $373B

US SWAPS: Latest spd levels:

* 2Y -0.94/19.64

* 5Y -0.55/12.95

* 10Y -0.61/5.34

* 30Y -0.98/-6.98

     OUTLOOK: Data/speaker calendar (prior, estimate): 

- Aug 09 04-Aug jobless claims (218k, 220k) 0830ET

- Aug 09 Jul Final Demand PPI (0.3%, 0.2%) 0830ET

- Aug 09 Jul PPI ex. food and energy (0.3%, 0.2%) 0830ET

- Aug 09 Jul PPI ex. food, energy, trade (0.3%,--)  0830ET

- Aug 09 05-Aug Bloomberg comfort index 0945ET

- Aug 09 Jun wholesale inventories (0.6%. --) 1000ET

- Aug 09 Jun wholesale sales (2.5%, --) 1000ET

- Aug 09 03-Aug natural gas stocks w/w (+35Bcf, +45Bcf) 1030ET

- Aug 09 US Tsy $18B 30Y Bond auction, 1300ET

- Aug 09 08-Aug Fed weekly securities holdings 1630ET

Eurodollar/Treasury Option Summary

Eurodollar options, Pit/screen:

* 30,000 Oct 72 puts at 1vs 9735.5/0.10%

* +4,000 Short Sep 68 puts at 2 vs 9698/0.10%

* 7,500 Green Dec 71/73 1x3 call sprd at 3

* 5,000 Blue Dec 67/70 2x1 put sprd at 2.5

* 12,000 Dec 75 calls at 2.25

* -60,000 Dec 73/75 call sprd at 3.5

* -10,000 Oct 72/73 put sprd at 5 to buy Oct 73/75 call sprd at 2.5, BLOCK

* -20,000 Short Sep 71 puts at 14.5 vs 9700.5/0.75%

* 5,000 Long Green Sep 55/58 5x2 put sprd at 0

* +6,000 Aug 76 calls at 0.5

* +4,000 Oct 71/72 put sprd at 0.75

* 5,000 Jun 71/72/75/76 Call Condor at 3

* 5,000 Sep 75/77 Risk Reversal at 0 vs 9759.5/0.16%

US TSY OPTIONS: Latest trade,

* +5,000 FVZ 105.75 puts at CAB

* +1,000 TYV 118 puts at 10

* +2,000 TYU 120 calls at 9 vs 119-16/0.25%

* 5,000 TYU 120/12.25 call sprd at 3

* +5,000 USU 139.5/140.5 put sprd at 6

* -2,500 FVV 112.25/113.5 Strangle at 15.5

--MNI Chicago Bureau; +1 630-698-0154; email: ryan.martin@marketnews.com

[TOPICS: MTABLE,M$U$$$,M$$FI$,MN$FI$,MN$FX$]