US TSYS: QUIET INSIDE RANGE START TO FOMC WEEK, STOCKS SOUR

US TSY SUMMARY: Quiet start to FOMC week, modest chop/inside range day with long

end support evaporating late. Quiet lead up to two-day FOMC meeting w/1-, 3- and

6M bill auctions and limited second tier data.

- Tsys opened, near late overnight lows, trailing weaker Bund timing around

bounce in US$ vs. Yen. Risk-off in first half, Tsys rebounded by midmorning,

extending top end of range into midday as equities fell sharply as FANG shares

tumbled (Facebook, Amazon, Netflix, and Google) large part in emini's

underperformance today, index -52.75 at 2703.25.

- Tsys climbed to session highs after large Blocks, both through offers: 28,071

TYM 120-13, through -12 offer; 7,941 WNM 157-13, through -09 offer at post time

- Swap spds tighter by the close, session lows w/short end leading move. Decent

two-way in 2s from 2.592% to 2.605% in second  half w/receiver unwinds, profit

taking, receiver in 3s at 2.70395%, $110M 2s5s flattener. Ongoing 2s3s10s fly on

good size (>$400M), paying the belly. Pick-up in swappable supply also weighing

on spds.

- Late ylds: 2Y 2.303%, 3Y 2.449%, 5Y 2.645%, 7Y 2.780%, 10Y 2.850%, 30Y 3.088%

US TSY FUTURES: Trading lower after the bell -- long end support has evaporated.

LIGHT session volume (TYM<1.2M). Curve update:

* 2s10s -0.510, 54.434 (56.130H/53.703L);

* 2s30s -0.107, 78.088 (79.805H/76.627L);

* 5s30s +0.628, 43.980 (44.709H/42.275L);

Current futures levels:

* Jun Ultra bonds down 9/32 at 157-03 (156-16L/157-22H)

* Jun 30-yr Bond futures down 4/32 at 144-10 (143-27L/144-24H)

* Jun 10-yr futures down .5/32 at 120-10.5 (120-02.5L/120-16H)

* Jun 5-yr futures down .75/32 at 113-31.75 (113-27.75L/114-04H)

* Jun 2-yr futures steady at 106-07.25 (106-06L/106-08.75H)

US EURODOLLAR FUTURES CLOSE: Mildly higher, short end outperforming all session.

Current White pack (Jun'18-Mar'19):

* Jun'18 +0.020 at 97.690

* Sep'18 +0.025 at 97.605

* Dec'18 +0.015 at 97.470

* Jun'19 +0.010 at 97.360

* Red pack (Jun'19-Mar'20) +0.010-0.020

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

* Blue pack (Jun'21-Mar'21) +0.010-0.005

* Gold pack (Jun'22-Mar'22) +0.005-0.015

US DOLLAR LIBOR: Latest settles, 

* O/N +0.0013 to 1.4475 (-0.0007 last wk)

* 1 Month +0.0186 to 1.8407% (+0.0718 last wk)

* 3 Month +0.0208 to 2.2205% (+0.1120 last wk)

* 6 Month +0.0269 to 2.3905% (+0.0950 last wk)

* 1 Year +0.0187 to 2.6332%

     US SWAPS: Spds running tighter by the close, session lows w/short end

leading move. Decent two-way in 2s from 2.592% to 2.605% in second  half

w/receiver unwinds, profit taking, receiver in 3s at 2.70395%, $110M 2s5s

flattener. Ongoing 2s3s10s fly on good size (>$400M), paying the belly. Pick-up

in swappable supply also weighing on spds. Latest spread levels:

* 2Y  -1.75/30.19

* 5Y  -1.06/14.44

* 10Y -0.94/3.62

* 30Y -0.75/-14.25

PIPELINE: $6.85B multi-tranches from 3 names launched, $500M Conn P&L 30Y Priced

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

03/19 $500M *Connecticut Light & Power WNG 30Y FMB +93

03/19 $2.5B #AIG $750M 10Y +140, $1B 30Y +170, $750M 30NC10 Sub 5.75%a

03/19 $2.1B #Unilever Cap $400M 3Y, $550M 5Y, $350M 7Y, $800M 10Y

03/19 $1.75B #Macquarie Grp USD $1.25B 6NC5 fix/FRN, $500M 11NC10 +180

03/19 $1B Kommunalbanken (KBN) 2Y; IPT MS flat

03/19 $Benchmark HSBC Holdings USD AT1 PerpNC5/PerpNC10, 6.375%/6.625% Area

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

- Mar 20 FOMC policy meeting kicks off 

- Mar 20 Mar Philadelphia Fed Nonmfg Index (31.0, --) 0830ET 

- Mar 20 17-Mar Redbook retail sales m/m (-0.3%, --) 0855ET 

- Mar 20 US Tsy 1-Month Bills auction 1130ET

Eurodollar/Treasury Option Summary

Eurodollar options, Pit/screen:

* +20,000 short Jun 70 puts, 3.5 vs. 97.22/0.10%

* +15,000 May 75/76 put spds 1.0 over the 78 calls

* +3,000 Apr 77/78 1x2 call spds, 1.25

* +2,500 Green Apr 72/73 1x2 call spds, 0.5

* -5,000 Dec 72/73 put spds, 4.5 vs. 97.46/0.10%

* +5,000 Green Jun 67/70 put spds, 8.0

* -8,000 Sep 76 calls, 4.5

* 10,000 short May/short Jun 70 put spds, 1.5

* -2,000 Blue Jun 75 straddles, 52.5

* total +25,000 Red Sep19 61/65 2x1 put spds, 2.0

* -5,000 Sep 76/78/81 put flys, 4.25

* +5,000 Jun 75/76 put spds, 3.25

* 3,500 short Dec 67/70 2x1 put spds, 0.0

* 10,000 Green Sep 62/67/70 1x3x2 put flys, 11.0 net

* -8,000 short Sep 76 calls, 4.5

* total +15,000 Red Sep19 61/65 2x1 put spds, 2.0

* -30,000 Jun 76/77/78 put trees, 4.5 net in pit adds to 30k Block

* 2,250 Sep 76/78/81 put flys, 4.25

Block, 0907:26-0911:17ET

* total -30,000 Jun 76/77/78 put trees, 4.5 net

* total +25,000 short Jun 70 puts, 3.5 pit/screen

* +5,000 Apr 75/76 2x1 put spds, 1.75

* 2,000 Jun 76/77/78 call trees, 3.25

* 2,000 Sep 75/76/77 call trees, 1.5

* -10,000 short May 68/70 put spds, 1.0 vs.

* +10,000 short Jun 68/70 put spds, 2.0, 1.0 net

* -4,000 short Apr 70/71 put spds, 1.5 vs. 97.255/0.10%

* +2,500 Jun 78 calls, 2.0 vs. 97.675/0.15%

Block, 0715:00ET,

* +5,000 Apr/May 75 put spds, 0.75, May over

Tsy options, Pit/screen, note, April options expire Friday

* over +/-4,000 TYJ 121 conversions, 0.0

* more FVJ 114 straddles trading 24/64

* over 5,000 FVJ 114 straddles 24/64

* over 5,000 FVJ 113.75 puts, 7/64

* 10,000 TYK 116 puts, 1/64 earlier

* 1,500 TYK 119.5 puts, 20/64

* 1,000 TYJ 120.25/120.5 1x2 call spds, 3/64 v. 120-06/0.18%

* 1,000 TYK 119/119.5/120/120.5 put condors, 8/64

* USK 144 straddles trading small 1-48/64

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

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