US TSYS END STRONGER, FLATTER AMID FX-TIED BID, FIRMER BUNDS

     US TSYS SUMMARY: Treasuries ended Fri mainly stronger/flatter amid weaker

US$/yen in morning and firm German Bunds. Tsys extended session highs into

midday as US%/Yen slipped below 112.0 to 111.96 (4-wk lows) before firming

later, Gold jumped also: up 1.31% to $1295.00 recently. 

- Cash Tsys long end improved too, while 2s/10s yld spd briefly made new 10+

year low of 61.504 before ending closer to +62.20. Equities traded weaker. 

- Quiet end to wk, nobody eager to add more risk into wknd. Focus on next wk's

Thanksgiving holiday. 

- Modest 2way flow earlier, fast$, prop and bank portfolio squaring, pickup in

Tsy futures Dec/Mar position rolls. FX-tied buying by black boxes amid weaker

US$/yen, and more flatteners in 2/10Y, 2/30Y, 2/5Y and 5/30Y cash Tsy curves. 

- With exception of front quarterly, Eurodollar futures earlier traded mildly

higher after a weaker open, heavy selling in EDZ7 (total volume >260k) after

higher 3M LIBOR set at 1.4407%. Swap spds mildly wider for most part, short end

narrowing on modest rate receiving/payer unwinds. 

- TSYS 3PM ET: 2y 1.730%, 3y 1.831%, 5y 2.062%, 7y 2.238%, 10y 2.354%, 30y

2.793%.

US SWAPS: /CLOSE: US swaps spreads ended mildly wider, for the most part with

short end narrowing on modest rate receiving/payer unwinds. Light corporate

issuance adding to move, supply expected to evaporate heading into Thanksgiving

holiday.

Latest spread levels:

* 2Y -1.36/16.45

* 5Y -0.13/5.88

* 10Y --/-0.63

* 30Y +0.75/-22.88

US EURODLR FUTURES CLOSE: Front end traded stubbornly lower Friday; EDZ7 led

volume with more than 2659,788 traded:

* Dec'17 -0.002 at 98.4575

* Mar'18 flat at 98.295

* Jun'18 +0.005 at 98.165

* Sep'18 +0.005 at 98.085

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

- Nov 20 Oct leading indicators (-0.2%, +0.6%) 1000ET

- Nov 20 US Tsy $36.0B 26-Week Bill auction 1130ET

- Nov 20 US Tsy $42.0B 13-Week Bill auction 1130ET

Eurodollar/Treasury option summary

Eurodollar options

Pit/screen:

* +15,000 short Dec 81 calls, 1.5 vs. 98.01/0.07%

* -4,000 Green Dec 78 straddles, 12.5 vs. 97.865/0.10%

* +18,000 Dec 85 calls, 1.0 vs. 98.46/0.34%

* +40,000 short Apr 73/76 put spds, 2.0 vs. 97.945/0.10%, adds to +20k Tue at

3.0

* +2,500 short Mar 80/81 1x2 call spds, 0.5

* +2,500 Red Dec 76/77 put spds 0.5 over the Sep 77 puts

* -1,000 Mar/Jun/Sep/Red Dec 82 straddle strip, dealer sale. 99.0 cr

* +12,000 Mar 83/85/86 call flys, 1.75 on screen

* +6,000 short Dec 77 puts, cab

* -3,500 short Dec 80 straddles vs. short Dec 81 calls, 8.0 cr

* +3,000 Feb 83 straddles vs. Feb 85 calls, 12.0 net db

Tsy options

Pit/screen:

* 1,900 TYG 151.5 puts, 4/64 vs. 124-25

* 1,500 USZ 152/153 2x1 put spds, 5/64

* -5,000 TYG 121.5 puts, 4/64 vs. 124-25.5

* +2,500 FVH 115.7/116.7 2x1 put spds, 10.5/64 vs. 116-16.2

* 1,000 FVZ 117 straddles, 16/64

* 1,500 TYH 123 puts 23/64 vs 124-21.5

* 1,500 TYZ 124 puts 1/64 vs 124-31

* 1,000 TYZ 124.75 puts at 8/64 vs. 500 USZ 152 puts, 6/64

* +9,300 FVG 115.5 puts, 5/64 screen

* +1,000 USH 148/150 put spds, 37/64 earlier

--MNI New York Bureau; tel: +1 212-669-6432; email: sheila.mullan@marketnews.com

[TOPICS: MTABLE,MNUEQ$,M$U$$$,MR$$$$,M$$FI$,MN$FI$]