US TSYS: TSY 10YY REJECTS 3.126%H, MAY FOMC MIN'S NEXT WED

US TSY SUMMARY: Treasury off session highs by the bell, mirroring US$/Yen after

the pair extended session lows (110.61, -.16 vs. 111.07 pre-open high). Decent

futures volume -- inflated by June/Sep roll activity.

- The USD index higher (DXY +0.148, 93.617) on back of EM concerns; stocks

weaker (emini -3.0, 2715.75); West Texas crude weaker (WTI -0.19, 71.30); gold

firmer (XAU +3.23, 1293.98). Limited data on day (GDP Now forecasts), little

react to multiple Fed speakers; many sidelined ahead May FOMC minutes next Wed.

- Swaps spds tighter, spd curve unwinding portion wk's flattening, bank

portfolio paying 3s earlier; modest payers in 1s, 4s and 5s fading the two day

move, while some modest spd curve steepeners (2s5s and 4s7s). No new corp

issuance after >$35B priced on week.

- Curves mixed w/short end flatter. Tsys also gained as German bunds surged

earlier. Italy's 10yr yield climbed over 30 basis points through wk largely

driven by 5-star/Lega's coalition proposals.

- Tsy cash/ylds: 2Y 99-21.25 (2.549%), 5Y 99-11 (2.892%), 10Y 98-11 (3.067%),

30Y 98-10.5 (3.211%)

US TSY FUTURES CLOSE: Trading near session highs into the close. Curves mixed,

short end flatter, update:

* 2s10s -2.422, 51.821 (55.127H/51.267L);

* 2s30s -2.052, 65.771 (68.826H/65.521L);

* 5s30s +0.697, 31.642 (32.936H/30.597L);

Current futures levels:

* Jun Ultra bonds up 1-02/32 at 154-07 (152-23L/154-07H)

* Jun 30-yr Bond futures up 25/32 at 141-07 (140-05L/141-08H)

* Jun 10-yr futures up 10.5/32 at 118-27 (118-12L/118-28H)

* Jun 5-yr futures up 6/32 at 113-02.75 (112-26.75L/113-03.5H)

* Jun 2-yr futures up 1.75/32 at 105-29.75 (105-27.75L/105-30H)

US TSY FUTURES: Jun/Sep roll update. June future's staggered expiration on June

20 for 10s, 30s and Ultras, and June 29 for 2s and 5s; September futures go "top

step" on May 31. Latest volume:

* TUM/TUU appr 44.5k from 6.75-7.5; 7.0 last

* FVM/FVU appr 87.3k from 9.5-10.25; 9.75 last

* TYM/TYU appr 55.6k from 11.5-13.0; 11.75 last

* USM/USU appr 1.0k, 26.75 last

* WNM/WNU appr 6.5k, 22.5-22.75, 22.5 last

US EURODOLLAR FUTURES CLOSE: Just off session highs into the close on mild

volume, long end of the strip leading the way. Current White pack

(Jun'18-Mar'19):

* Jun'18 +0.0150 at 97.6925

* Sep'18 +0.010 at 97.530

* Dec'18 +0.020 at 97.345

* Jun'19 +0.025 at 97.210

* Red pack (Jun'19-Mar'20) +0.045-0.030

* Green pack (Jun'20-Mar'21) +0.050-0.045

* Blue pack (Jun'21-Mar'21) +0.055-0.050

* Gold pack (Jun'22-Mar'22) +0.055

US DOLLAR LIBOR: Latest settles,

* O/N +0.0012 to 1.7072% (+0.0010/wk)

* 1 Month +0.0050 to 1.9527% (+0.0340/wk)

* 3 Month -0.0018 to 2.3294% (-0.0131/wk)

* 6 Month -0.0007 to 2.4987 (-0.0163/wk)

* 1 Year -0.0017 to 2.7648% (-0.0010/wk)

REPO REFERENCE RATES: (rate, volume)

* Secured Overnight Financing Rate (SOFR): down to 1.74% from 1.75% prior, $754B

* Broad General Collateral Rate (BGCR): up to 1.71% from 1.70% prior, $366B

* Tri-Party General Collateral Rate (TGCR): up to 1.71% from 1.70% prior, $351B

US SWAPS: Spds tighter but off session lows late amid amid decent payer interest

in 1Y (>$750M at 2.5575%) in second half. Other late flow includes receiver in

5s at 2.98947%, $97.1k DV01 2Y-5Y STEEPENER and $145.7k DV01 7Y-10Y STEEPENER.

First half flow included modest payers in 1s, 4s and 5s fading the two day move,

while some modest spd curve steepeners (2s5s and 4s7s). Latest spd levels:

* 2Y  -1.00/23.94

* 5Y  -0.31/9.69

* 10Y -0.25/3.00

* 30Y -0.06/-8.56

PIPELINE: No new issuance Friday after $35.05B priced on week

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

$5.75B priced Thursday

05/17 $2.5B *Svenska $1.25B 3Y fix +65, 1.25B 3Y FRN +47

05/17 $1.95B *Schwab $600M 3Y fix +50, $600M 3Y FRN L+32, $750M 7Y +80

05/17 $750m *Valero Energy 10Y +125

05/17 $500M *Province of New Brunswick 10Y +50

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

- May 21 Atl Fed Pres Bostic, "Welfare Economics: Trade & A Review of

Principles" at the Atlanta Economics Club in Atlanta, Q&A 1215ET

- May 21 Phi Fed Pres Harker CEO Fncl Seminar 2018 - Visionary Investing:

Managing Late Cycle Risks and Opportunities in New York, audience/media Q&A

1415ET

- May 21 Mn Fed Pres Kashkari, Town Hall Forum in Escanaba, Michigan, Q&A 1730ET

Eurodollar/Treasury Option Summary

Eurodollar options, Pit/screen:

Block, 1319:27, adds to -20k Block sale earlier

* -10,000 Mar 71/75 put spds, 24.5 vs. 97.195/0.40%

* 10,000 Jul 75 puts at 2.5 vs 9754/0.40%

* 7,750 Mar 70/75 Strangle at 9

UPDATE: Total 16,000 Blue Jun 71 calls at 1 vs 9688.5/0.10%

UPDATE: Total 10,000 Jun 76/77 call sprd at 6.5, Note earlier trades of 3.5k and

4k Jun 76/77 call sprd at 6 and 5.75

Block, 1226:59ET, appears to be a buy,

* 60,000 Mar 67 puts, 12.5 vs. 96.93/0.35%

Block, 1220:33-1221:11,

* total -20,000 Mar 71/75 put spds, 24.5 vs. 97.195/0.40%

* 17,500 Dec  76/77 call sprd at 1.5 vs 9738.5/0.10%

UPDATE: Total 12,000 Blue Jun 71 calls at 1 vs 9688.5/0.10%

* 10,000 Green Dec 76/80 call sprd at 1.5 vs 9691/0.40%

UPDATE: Total 4,000 Jun 73/75 put sprd at 0

* 8,000 Jun 76/77 call sprd at 6.5, Note earlier trades of 3.5k and 4k Jun 76/77

call sprd at 6 and 5.75

UPDATE: Total 25,000 Short Sep 67 puts at 2.5

UPDATE: Total 10,000 Blue Jun 71 calls at 1 vs 9688.5/0.10%

* 20,000 Short Sep 67 puts at 2.5

* 7,000 Blue Jun 71 calls at 1 vs 9688.5/0.10%

* 4,800 Short Jun 72/73 call sprd at 0.5 vs  9708.5/0.10%

* 3,500 Jun 76/77 call sprd at 6, Note earlier trade of 4k Jun 76/77 call sprd

at 5.75

* 3,000 Oct 75/76 call sprd at 1.75

* 2,000 Jun 73/75 put sprd at 0 vs 9769/0.10%

UPDATE: Total 4,000 Long Green 61/63 2x1 put sprd at 0.5

* 5,000 Short Sep 67/70 put sprd at 8 vs 9700.5/0.30%

* 5,000 Short Jun 72 call at 1 vs 9709.5/0.15%

* 3,000 Long Green 61/63 2x1 put sprd at 0.5

* 7,000 Short Jul 73/76 call sprd at 0.5

* 5,000 Short Jul 70/71 put sprd at 7.5 vs 9702.5/0.25%

* 4,000 Long Red Sep 66/68 5x2 put sprd at 0

* 2,600 Short Dec 75/77 1x2 call sprd at 0.5

* 2,600 Short Dec 62/63 2x1 put sprd at 0

* 7,000 Short Sep 66/68 2x1 put sprd at 3

* 4,000 Jun 76/77 call sprd at 5.75

* 5,000 Short Jun 70 put at 2 vs 9708/0.25%

Tsy options, Pit/screen:

* +10,000 TYM 119 calls, 10/64 vs. 118-27.5/0.39%

* +8,000 TYM 119 calls, 8/64 vs. 118-25/0.35%

* +5,000 TYN 120/120.5 call spds, 3/64 vs. 119-00.5, remains heavily offered

* 3,000 TYN 117 puts, 8/64 covered

* 2,000 TYN 119.5 calls, 10/64 vs. 118-14.5/0.14%

* 7,000 TYM 119.5 calls, 2/64 vs. 118-21.5/0.12% -- adds to 10k Block (>27k on

screen)

* 2,500 FVQ 114/114.5 call spds, 2.5/64 vs. 113-02.5/0.05%

Block, 1007:30, remains offered

* 10,000 TYM 119.5 calls, 2/64

* 4,300 TYM 118.5/119 put spds, 16/64

* 3,600 TYN 119.5/120.5 1x2 call spds, 3/64 vs. 118-22.5/0.05%

* +2,100 FVU 114 calls, 8/64 vs. 112-31.25

* +1,700 TYM 119 calls, 5/64 vs. 118-19

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

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