US TSYS: FI STRONGER/CURVE FLATTER ON HEAVY DEBT ISSUANCE

US TSY SUMMARY: Futures trading higher across the curve by the bell, just off

top end of late session highs on light early week volume.  Curve flattening

theme w/long-end outperforming

- US$ index softer (DXY -.211, 89.882); equities mildly higher (emini +2.25,

2791.0); gold near steady (XAU +.25, 1323.55); West Texas crude weaker (WTI

-.68, 41.36).

- Quiet start to week, light volume (TYM<830k), Little economic data to trade

Monday, mkt busy absorbing condensed Tsy issuance ($28B 3Y and $21B 10Y r/o

today, $13B 30Y r/o Tuesday). Salient data Wed: retail sales (+0.4% est).

- Pre-auction and dal-tied hedging helped generate some volume.

Late ylds: 2Y 2.262%, 3Y 2.425%, 5Y 2.635%, 7Y 2.790%, 10Y 2.868%, 30Y 3.130%

US TSY FUTURES: Higher across the curve, just off top end of late session highs

on light early week volume. Little economic data to trade Monday, mkt busy

absorbing condensed Tsy issuance ($28B 3Y and $21B 10Y r/o today, $13B 30Y r/o

Tuesday). Salient data Wed: retail sales (+0.4% est). Curves flatten, latest

curve update:

* 2s10s -3.154, 60.017 (63.684H/59.834L);

* 2s30s -3.458, 86.142 (90.026H/86.060L);

* 5s30s -1.529, 49.085 (50.590H/48.698L);

Current futures levels:

* Jun Ultra bonds up 27/32 at 156-01 (154-25L/156-01H)

* Jun 30-yr Bond futures up 20/32 at 143-24 (142-27L/143-26H)

* Jun 10-yr futures up 5.5/32 at 120-06.5 (119-28.5L/120-07H)

* Jun 5-yr futures up 2.75/32 at 114-01.75 (113-28.75L/114-02H)

* Jun 2-yr futures up .25/32 at 106-08 (106-07L/106-08.5H)

US EURODOLLAR FUTURES CLOSE: Trade steady/mixed by the bell, short end under

pressure all day. Current White pack (Mar'18-Dec'18):

* Mar'18 -0.012 at 97.840

* Jun'18 -0.015 at 97.715

* Sep'18 -0.020 at 97.605

* Dec'18 -0.015 at 97.465

* Red pack (Mar'19-Dec'19) steady to -0.005

* Green pack (Mar'20-Dec'20) steady to +0.010

* Blue pack (Mar'21-Dec'21) +0.010-0.015

* Gold pack (Mar'22-Dec'22) +0.015

US DOLLAR LIBOR: Latest settles,

* O/N -0.0019 to 1.4450 (-0.0006 last wk)

* 1 Month +0.0146 to 1.7649% (+0.0598 last wk)

* 3 Month +0.0182 to 2.1069% (+0.0635 last wk)

* 6 Month +0.0181 to 2.2867% (+0.0402 last wk)

US SWAPS: Spds running wider across the curve, short end leading move, deal-tied

hedging adding to move, still waiting for supply to price for hedges to be

unwound. Latest spread levels:

* 2Y  +1.06/31.50

* 5Y  +1.00/14.75

* 10Y +0.62/3.12

* 30Y +0.69/-15.31

PIPELINE: Multiple Launches $5.3B Campbell 7-tranche, $2.25B CBA and $1.75B

Standard Chrtrd lead

Date $MM Issuer/Rating/Desc/Maturity/Yld/Leads; Priced *; Launch #:

03/12 $5.3B #Campbell 7-tranche

      $500M 2Y FRN L+50

      $350M 3Y fix, +90, $400M 3Y FRN L+63

      $1.2B 5Y +105, $850M 7Y +120, $1.2B 5Y +105, $1B 10Y +130, $700M 30Y +170,

03/12 $2.25B #Commonwealth Bank of Australia (CBA) 5Y fix and/or FRN, 10Y fix

03/12 $1.75B #Standard Chartered Plc $1.25B 6NC5 +125, $500M 15NC10 +200

03/12 $1.5B #Caterpillar $450M 3Y fix +50, $450M FRN L+23, $250M Tap of CAT 3.25

+78

03/12 $650M #Fifth Third Bancorp 10Y +110

03/12 $500M #Toyota Ind, $500M 5Y +60, $500M 10Y +70

03/12 $1.25B Valeant Pharmaceuticals, 8NC4 Sr notes

03/12 $Benchmark Asian Development Bank (ADB) 5Y +11a

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

- Mar 13 Feb NFIB Small Business Index (106.9, --) 0600ET

- Mar 13 Feb CPI (0.5%, 0.2%) 0830ET

- Mar 13 Feb CPI Ex Food and Energy (0.3%, 0.2%) 0830ET

- Mar 13 10-Mar Redbook retail sales m/m (-0.5%, --) 0855ET

- Mar 13 US Tsys 4W bill auction 1130ET

- Mar 13 US Tsys $13B 30Y Bond auction Re-open 1130ET

Eurodollar/Treasury Option Summary

Eurodollar options, Pit/screen:

* -10,000 Apr 77/Jun 78 call squash, 4.5 net/put over

* -4,000 Green Jun 66/68 put spds, 4.5 vs. 97.09/0.10%

* +7,500 Green Dec 66/70 put strip, 33.5

* +5,000 Green Mar 70/71 call over risk reversals, 1.5

* +5,000 Red Jun 66/70 7x2 put spds, 1.5

* +15,000 short Apr 71 puts, 2.0 vs. 97.265/0.24%

* +16,000 Mar 78 puts, 4.0 vs. 97.837/0.75%

* +7,500 Dec 71/72 3x1 put strip, 12.0

* +5,300 Green Dec 66/70 put strip, 33.5 vs. 97.045/0.67%

* 2,500 Green Jun 71 straddles, 30.5

Block, 1007:51ET

* +10,000 short Jun 70/72 put spds 4.0 over the short Jun 75 calls

* -7,700 short Jun 70/75 call over risk reversals, 1.5 vs. 97.255/0.40%.

Meanwhile, CME Group post-dates another

* +25,000 short Mar 75 calls Blocked at cab, total just over 75,100 includes

Globex buys

* +20,000 Sep 73/75 put spds, 3.5

* -2,500 Mar 70/712x1 put spds, 4.0

* +2,750 Green Jun 66/67/72/73 put condors, 8.0 w/

* +2,750 short May 68/70/73/75 put condors, 8.5 16.5 total

* +10,000 Dec Dec 72/77 put over risk reversals, 0.0

* -12,500 Red Dec 65/70 2x1 put spds, 7.0

* +15,000 Green Apr 67/68 put spds, 1.5 vs. -5,000 Green Mar 70/71 2x1 put spds,

3.75

* 10,000 Apr 76/77 put strip 7.5 vs. Jun 78 calls, 2.0 vs. 5,200 EDM 97.71

* -12,500 Red Dec 67/70 2x1 put spds, 7.0

* +15,000 Green Apr 67/68 put spds, 1.5 vs. -5,000 Green Mar 70/71 2x1 put spds,

3.75

* 5,000 Apr 76/77 put strip 7.5 vs. Jun 78 calls, 2.0 vs. 5,200 EDM 97.71

* 2,000 Green Mar 70/71 2x1 put spds, 4.0

* 3,200 Green Jun 66/67/68 put flys screen

* screen, 38,000 short Jun 70/72 put spds

* Ongoing, over +10,000 (pit/screen) short Jun 70/71 put spd buy 1.5 over short

Jun 75/76 call spd, adds to +40k Block earlier and +15k on Fri at 1.0

* total 50,000 short Mar 75 calls, cab, includes 24.5k Block

Earlier Block: 

* +24.5k Mar8 mid-curve (0EH8) 97.50 calls at 0.5 blocked at 0945GMT

Block: 

* Jun8 mid-curve (0EM8) 97.125/97.00 put spread vs 97.50/97.625 call spread

blocked at 1.5 in total of 40k vs EDM9 @ 97.26 -- ongoing, adds to +15k at 1.0

on Fri

Tsy options, Pit/screen:

* 2,000 TYJ 120 straddles, 45/64

* 2,500 TYK 121/121.5 call spds, 7/64 earlier

Block, 1016ET, was bid at post time, now 21/64 bid

* -19,733 TYJ 120 puts, 20/64 vs. 120-03.5/0.45%, closer

* +7,500 FVJ 114.7 calls, 2/64 on screen 

* over 19,000 TYJ 119.5 puts, 13/64 

* 1,100 TYJ 119.5/120 put spds, 13/64 vs. 119-30

--MNI Chicago Bureau; tel: +1 312-431-0089; email: bill.sokolis@marketnews.com

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