US TSYS: TRUMP FOCUSED ON LOWERING OIL PRICES

US TSY SUMMARY: Tsy trading slightly lower into the bell, near the top of the

range with strong volume (TYZ 1.67M), curves flatter. Data today led by US

Durable Goods coming in weaker than expected and Initial Claims coming in

slightly better than expected; US Leading Index came in line with expectations,

Existing Home Sales came in a bit stronger than expected, U of Michigan

Sentiment came in weaker than expected causing Tsy to dip slightly; 

-Headline out today, "*TRUMP THANKS SAUDI ARABIA, URGES IT TO KEEP LOWERING OIL

PRICES-bbg" stirred up controversy as many want justice for journalist Khashoggi

-Late in the session, "*JUNCKER, MAY, FAIL TO FINALIZE DEAL OVER BREXIT

TERMS-bbg", however May will fly back to Brussels on Saturday to meet with

Juncker

-DXY down -.130, 96.706 (96.496L/96.869H), $/Eur up +0.0019 at 1.1390, $/Yen up

+.31 113.08; equities higher (emini +23.00, 2663.00 vs. 2671.25H); Gold up (XAU

+5.38, 1227.01); Oil up (WTI +1.03, 54.46). 

-Tsy cash/ylds: 2Y 100-03.75 (2.812%), 5Y 99-29.75 (2.888%), 10Y 100-17

(3.061%), 30Y 101-06 (3.311%).

     TECHNICALS:

     US TSY FUTURES CLOSE: Trading slightly lower near the top of the range;

strong

volume (TYZ 1.65M); curves mixed; update:

* 2s10s -0.814, 24.886 (24.078L/26.398H);

* 2s30s -0.975, 49.912 (49.286L/52.219H);

* 5s30s -0.507, 42.116 (41.198L/43.670H);

Current futures levels:

* Dec Ultra bonds down 07/32 at 151-18 (150-30L/151-22H)

* Dec 30-yr Bond futures down 06/32 at 139-27 (139-14L/139-30H)

* Dec 10-yr futures down 4.5/32 at 119-6.5 (119-0.5L/119-8.5H)

* Dec 5-yr futures down 03/32 at 112-26.25 (112-22L/112-27.75H)

* Dec 2-yr futures down 1.25/32 at 105-14.75 (105-14L/105-16H)

     US EURODOLLAR FUTURES CLOSE: Trading mildly lower in the middle of the

range;

strong volume. Current White pack (Dec'18-Sep'19):

* Dec'18 -0.0225 at 97.2425

* Jun'19 -0.010 at 97.160

* Jun'19 -0.010 at 97.060

* Sep'18 -0.015 at 96.985

* Red pack (Dec'19-Sep'20) -0.030-0.020

* Green pack (Dec'20-Sep'21) -0.035-0.030

* Blue pack (Dec'21-Sep'21) -0.030-0.025

* Gold pack (Dec'22-Sep'22) -0.025-0.015

     US DOLLAR LIBOR: Latest settles,

* O/N +0.0077 to 2.1805% (+0.0052/wk)

* 1 Month +0.0096 to 2.3151% (+0.0143/wk)

* 3 Month +0.0238 to 2.6769% (+0.0324/wk)

* 6 Month +0.0227 to 2.8859% (+0.0233/wk)

* 1 Year +0.0133 to 3.1104% (-0.0132/wk)

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

* Secured Overnight Financing Rate (SOFR): 2.20% vs. 2.24% prior, $845B

* Broad General Collateral Rate (BGCR): 2.18% vs. 2.22% prior, $427B

* Tri-Party General Collateral Rate (TGCR): 2.18% vs. 2.22% prior, $407B

     PIPELINE: *** Slow day in corporate supply heading into Thanksgiving

holiday

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

11/21  $1.25b *Kommuninvest Long 3Y MS +6

     OUTLOOK: Tomorrow Thanksgiving Holiday

- Nov 23 18-Nov Bloomberg comfort index 0945ET

- Nov 23 Nov Markit Mfg Index (flash) (55.9, --) 0945ET

- Nov 23 Nov Markit Services Index (flash) 0945ET

- Nov 23 Q4 St. Louis Fed Real GDP Nowcast 1100ET

- Nov 23 Q4 NY Fed GDP Nowcast 1115ET

     Eurodollar/Treasury Option Summary

Eurodollar options, Pit/Screen: 

* 5,000 Mar 70/71/72 call fly at 3.5 BLOCK

* 10,000 Sep 72/75 1x2 call sprd at 0.5, Total 90k all day, 60k blocked

* 10,000 Mar 70/71/72 call fly at 3.5, adds to 5k block earlier

* 5,000 Short Dec 68 puts at 5 vs 9692/0.40%

* 4,000 Jun 70/Green Jun 66 put strip at 0 vs 9699.5/0.10%

* 6,000 Dec 73/75 1x2 call sprd at CAB

* 10,000 Mar 72/73/75 call fly at 2 BLOCK, Total 17,500 

* 4,000 Short Dec/Green Dec 67 put sprd at 0.5 vs 9694/0.04%

* 6,000 Mar 71/72 1x2 call sprd at 0.75

* 4,000 Short Dec 70/71/72 call fly at 1.5 vs 9692.5/0.10%

* 4,000 Short Jan 71 calls at 4.5 vs 9692.5/0.25%

* -5,000 Dec 72/73/75 call fly at 1.5

* 5,000 Short Jan 66/68 2x1 put sprd at 6 vs 9690.5/0.24%

     TSY OPTIONS:

* 3,000 FVF 112/112.5 2x1 put sprd at 4.5

* Total +17,000 TYZ9 119 calls at 11

* -10,000 TYG 121.5 calls at 9 to 8

* Over +20,000 TYF 120 calls at 12

* -10,000 TYG 121 calls at 12

* +38,000 TYF 124 calls at 2, on screen

* >+25,000 FVH 108 puts at 1.5

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

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