US TSYS: QUIET MNTH/QTR/FISCAL YR END, NFP ON TAP NEXT WEEK

US TSY SUMMARY: US TSY SUMMARY: Quiet end to wk, day after Fed raised target

range for the federal funds rate by 25bp, to 2.00%-2.25%. Early risk-off rate

bid on renewed Italy angst after Thu's budget meet 2.4% deficit higher than

exp), BTPs wider vs. Bunds (5Y appr 45.0), peripherals wider in general. US$

strong but off early highs, DXY +.235, 95.129 vs. 95.366H while Euro bounced to

just above 1.160.

- Long end bid evaporated as equities recovered, curves bent steeper. Sources

noted fast$ and prop acct selling intermediates, real$, bank bids below while

overall volume rather muted since the open. Little change in sovereign spds,

notably Italy vs. Bunds holding near session highs all session.

- Month/Qrtr/fiscal yr end extension buying supported short-intermediates,

curves bent steeper w/Bonds extending session lows late; late Block buys +12k

FVZ 112-15.5, +4.5k TNZ 126-20. Chatter deal-tied sales ahead potential Comcast

issuance next week.

- Ongoing political headline distractions: SCOTUS Kavanaugh vote delayed week

for further allegation investigation. Note, China out next week for National Day

holidays will dampen volume a little.

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

end, strong volume (TYU 1.40M), curves steepening; update:

* 2s10s +1.228, 23.305 (21.159L/23.678H);

* 2s30s +2.304, 37.599 (34.215L/38.017H);

* 5s30s +2.104, 24.702 (22.104L/25.296H);

Current futures levels:

* Dec Ultra bonds down 11/32 at 154-09 (154-07L/155-08H)

* Dec 30-yr Bond futures down 04/32 at 140-17 (140-14L/141-04H)

* Dec 10-yr futures up 02/32 at 118-26 (118-24L/119-00H)

* Dec 5-yr futures up 02/32 at 112-15.5 (112-13.75L/112-18.5H)

* Dec 2-yr futures up 0.5/32 at 105-11.5 (105-10.75L/105-12.5H)

US EURODOLLAR FUTURES CLOSE: Trading slightly higher with a parallel shift

across the strip, in the middle of the range with strong volume, Red Dec

continues to see the largest volume (EDZ9 420k). Current White pack

(Dec'18-Sep'19):

* Dec'18 +0.010 at 97.335

* Mar'19 +0.015 at 97.160

* Jun'19 +0.015 at 97.010

* Sep'19 +0.015 at 96.920

* Red pack (Dec'19-Sep'20) +0.020-0.015

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

* Blue pack (Dec'21-Sep'21) +0.015

* Gold pack (Dec'22-Sep'22) +0.010-0.005

US DOLLAR LIBOR: Latest settles,

* O/N -0.0025 to 2.1713% (+0.2504/wk) 

* 1 Month +0.0045 to 2.2605% (+0.0447/wk) 

* 3 Month +0.0023 to 2.3983% (+0.0257/wk) 

* 6 Month +0.0033 to 2.6038% (+0.0118/wk) 

* 1 Year +0.0013 to 2.9186% (+0.0103/wk)

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

* Secured Overnight Financing Rate (SOFR): 2.16% vs. 1.92% prior, $825B

* Broad General Collateral Rate (BGCR): 2.15% vs. 1.91% prior, $402B

* Tri-Party General Collateral Rate (TGCR): 2.15% vs. 1.91% prior, $388B

PIPELINE: $3.25B priced Thursday, $11B/week, $143.5B for month

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

No new issuance as yet for Friday

-

$3.25B priced Thursday

09/27 $2B *Standard Chartered $1.4B 4NC3 fix/FRN +135, $600M 4NC3 FRN +115

09/27 $1.25B *Societe Generale PerpNC5 AT1 7.375%

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

- Oct 01 Atl Fed Pres Bostic, Inclusive Eco Development Conf, GA, Q&A. 0830ET

- Oct 01 Sep Markit Mfg Index (final) 0945ET

- Oct 01 Sep ISM Manufacturing Index (61.3, 60.0) 1000ET

- Oct 01 Aug construction spending (0.1%, 0.5%) 1000ET

- Oct 01 Min Fed Pres Kashkari, moderated town hall, Minnetonka, Min, Q&A.

1100ET

- Oct 01 US Tsy $48B 13W bill auction (912796PK9) 1130ET

- Oct 01 US Tsy $42B 26W bill auction (912796RD3) 1130ET

- Oct 01 Bos Fed Pres Rosengren, 60th NABE Annl Meeting, Boston 1215ET

Eurodollar/Treasury Option Summary

Eurodollar options, Pit/Screen: 

* 10,000 Red Sep 56/58 put sprd at 2.5 vs 9683/0.10%

* +10,000 long Green Dec 50/55 put spds, 2.25

* +5,000 Green Dec 66/68 2x1 put spds, 7.0

* +2,000 Green Dec/Blue Dec 68 straddle spd, 0.5

* +5,000 Oct 73 calls, 0.5

* -15,000 short Dec 68/70 1x2 call spds, 0.75

* +22,000 Mar 66 puts, 0.5

* +8,500 Red Jun 58/61 3x2 put sprd at 4 vs 9682/0.10%

* +5,000 Nov 73/75 1x2 call sprd at 1.25 vs 9734.5/0.10%

* +10,000 Dec 72/73 put sprd at 5.5 vs 9732.5/0.10%

Ratio strangles/calendar spd:

* 6,374 TYX 119/121 strangles from 32- to 34/64 (mostly 34) vs.

* 13,503 TYZ 118/120 strangles at 32/64

* Total 15,000 TYZ 117.5 puts at 11, all day

* 1,000 TYX 119/120 1x2 call spds, 7/64

* 1,500 FVX/FVZ 112.25 put spds, 7.5/64

Decent screen trade ahead the pit open

* +10,000 TYX 119.5/120/120.5 call flys, 4/64

* +8,000 TYX 119.5 calls, 14/64 prior

* TYX 120/120.5 call spds trade 6/64

* +1,500 FVX 115 calls, .5/64

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

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