US TSYS: TSY CURVES BEAR STEEPEN, 10YY CLIMBS TO 3.033%

US TSY SUMMARY: Long end Tsys just off late session lows by the bell, 10YY

climbs to new high of 3.0334%; short end stable, w/curves steeper. Correlations

to stronger US$ climbing (DXY +.425, 91.191; US$/Yen to 109.37).

- Equities higher late (emini currently +6.25, 2641.5); gold still weaker (XAU

-8.35, 1322.04); West Texas crude little firmer/off lows (WTI +0.19, 67.89) some

headlines making rounds that Chevron evac'ing execs amid staff arrests in

Venezuela.

- Decent futures volume (TYM>1.4M), massive steepener Block (+100.17k FVM

113-08.5 vs. -63.88k TYM 119-03; said vs. Bund/bobl flattener (+29150 RXM8 at

157.81 vs. -65360 OEM8 at 130.61) earlier. Modest deal-tied flow in mix,

note-auction hedging, $35B 5y note stopped 0.2 through at 2.837% (2.612% at Mar

27 auction) at a 98-15.37 cash equivalent.

- Option flows rather bullish, in context -- accts taking profits on puts while

opening on buying calls to fade current sell-off. Focus on Thu's ECB rate annc

and Fri's GDP and ECI data for direction.

- Late ylds: 2Y 2.484%, 3Y 2.634%, 5Y 2.833%, 7Y 2.969%, 10Y 3.024%, 30Y 3.210%

US TSY FUTURES CLOSE: Lower across the curve, off session lows with brief

short-cover buying late; 10YY > 3% by the bell, 3.0240% (+0.0244). Curves

steeper after a flatter start, update:

* 2s10s +1.330, 53.618 (54.154H/50.185L);

* 2s30s +1.651, 72.236 (72.707H/67.997L);

* 5s30s +2.059, 37.532 (37.868H/34.229L);

Current futures levels:

* Jun Ultra bonds down 1-4/32 at 154-02 (153-26L/155-04H)

* Jun 30-yr Bond futures down 26/32 at 141-23 (141-17L/142-16H)

* Jun 10-yr futures down 8/32 at 119-02.5 (118-31L/119-09H)

* Jun 5-yr futures down 3.25/32 at 113-09.25 (113-06.25L/113-11.25H)

* Jun 2-yr futures down 0.75/32 at 106-00.5 (105-31.25L/106-01H)

US EURODOLLAR FUTURES CLOSE: Lower across the strip, near session lows with long

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

* Jun'18 -0.025 at 97.605

* Sep'18 -0.020 at 97.480

* Dec'18 -0.015 at 97.345

* Jun'19 -0.020 at 97.230

* Red pack (Jun'19-Mar'20) -0.020-0.025

* Green pack (Jun'20-Mar'21) -0.030-0.035

* Blue pack (Jun'21-Mar'21) -0.040-0.045

* Gold pack (Jun'22-Mar'22) -0.045-0.055

MONTH-END EXTENSIONS: Bloomberg-Barclays US month-end index extensions compared

to the average increase for the past year and the same time in 2017.

*.....................Projected...1Y Avg Incr..Last May

*US Tsys.................0.06........0.06........0.05

*Agencies................0.02........0.08........0.07

*Credit..................0.06........0.05........0.05

*Govt/Credit.............0.06........0.06........0.05

*MBS.....................0.07........0.05........0.14

*Aggregate...............0.06........0.05........0.08

*Long Govt/Credit........0.04........0.01.......-0.03

*Interm Credit...........0.06........0.04........0.06

*Interm Govt.............0.05........0.04........0.05

*Interm Govt/Cred........0.06........0.03........0.06

*High Yield..............0.07........0.00........0.01

US DOLLAR LIBOR: Latest settles, 

* O/N +0.0000 to 1.7031% (+0.0000/wk) 

* 1 Month +0.0016 to 1.8998% (+0.0030/wk)

* 3 Month +0.0040 to 2.3656% (+0.0064/wk)

* 6 Month +0.0030 to 2.5192 (+0.0080/wk)

* 1 Year +0.0032 to 2.7719% (+0.0116/wk)

REPO REFERENCE RATES: (rate, volume)

* Secured Overnight Financing Rate (SOFR): up to 1.71% vs. 1.70% prior, $747B

* Broad General Collateral Rate (BGCR): up to 1.68% vs. 1.67% prior, $339B

* Tri-Party General Collateral Rate (TGCR): up to 1.68% vs. 1.67% prior, $325B

US SWAPS: Spds at/near session wides by the close, short end outpacing, move

partially supported by drop in swappable issuance today. LAte day flow

evaporated after decent midday flow includes near $1B scale receiver in 5s

fading move wider, $500M receiver in 1Y at 2.55774% and some mixed flys: $292.2k

2Y-7Y-10Y Fly (receiving belly), $186.2k 4Y-5Y-6Y Fly (paying belly) and $292.2k

2Y-4Y-10Y Fly (paying belly). Latest spd levels:

* 2Y  +1.56/27.06

* 5Y  +1.19/11.94

* 10Y +0.56/3.06

* 30Y +0.94/-12.06

PIPELINE: $1.45B CNOOK Finance 2015 USA 5Y, 10Y Launched

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

04/25 $1B *Kommunalbanken 3Y MS+4

04/25 $1.45B #CNOOK Finance 2015 USA $450M 5Y +105, $1B 10Y +140

Chatter potential issuance this week:

04/25 $Benchmark, United Technologies

04/25 $Benchmark, Coca-Cola (KO)

40/25 $Benchmark Qualcomm, history of large annual issuance

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

- Apr 26 21-Apr jobless claims (232k, 231k) 0830ET

- Apr 26 Mar durable goods new orders (3.1%, 1.7%) 0830ET

- Apr 26 Mar durable new orders ex transport (1.2%, 0.5%) 0830ET

- Apr 26 Mar advance goods trade gap (-77.0b USD, --) 0830ET

- Apr 26 Mar advance wholesale inventories (1.0%, --) 0830ET

- Apr 26 Mar advance retail inventories (0.4%, --) 0830ET

- Apr 26 22-Apr Bloomberg comfort index 0945ET

- Apr 26 Q1 housing vacancies rate (1.6%, --) 1000ET

- Apr 26 20-Apr natural gas stocks w/w (-36Bcf, --) 1030ET

- Apr 26 Apr Kansas City Fed Mfg Index (17, --) 1100ET

- Apr 26 US TSY TO SELL $29.000 BLN 7Y NOTES, SETTLE APR 30 1300ET

- Apr 26 25-Apr Fed weekly securities holdings 1630ET

Eurodollar/Treasury Option Summary

Eurodollar options, Pit/screen:

* UPDATE: Total 20,000 Jun 73/75 put sprd at 0.5-0.7 vs 9759-60/0.10%

* 7,000 Short Jun 67/70 put sprd at 2

* 2,000 Short Oct 72/76 call sprd at 5

* 3,350 Green May 70/71/72 call fly at 2

* 10,000 Dec 75 put at 0.5

* 2,000 Dec 72/73 2x1 put sprd at 1.5

* 4,000 Short Jun 71/72 put sprd at 8.0

UPDATE: Total 20,000 Short Jun 77 call at 0.5 vs 9715/0.10%

UPDATE: Total 11,000 Jun 73/75 put sprd at 0.5 vs 9760/0.10%

* 10,000 Short Jun 77 call at 0.5 vs 9715/0.10%

* 3,000 Jun 73/75 put sprd at 0.5 vs 9760/0.10%

* 2,000 Green May 66 put at CAB

* 4,000 Short Jun 70 put over 75/76 1x2 call sprd at 2

* 5,500 Green Dec 63/66/67 put sprd at 1

* 2,000 Blue May 67/70 Strangle at 4

* 2,500 Dec 71/72 put sprd over Dec 76 call at 0.5

Block, 0855:02ET, strike roll-down on 3x1 ratio

* 30,000 Blue Mar 57 puts, 2.5 vs.

* 10,000 Blue Mar 68 puts, 27.0 vs.

* 3,200 EDH2, 96.87

* 2,500 Short Sep 71/72/73/75 call Condor at 2.5

* 2,750 Green Jun 68/71 put sprd at 13.5 over Green Jun 73 call

* 2,000 Short Aug 65/67 put sprd at 2

* 10,000 Dec 78 call at 1.5 vs 9737/0.10%

Block, 0748:16ET,

* +11,000 Mar 70/71 put spds, 4.5 vs.

* -11,000 Mar 77 calls, 2.5

Block, 0740:11ET, adds to -2k on screen

* -5,000 Green May 68 puts, 3.0 w/

* -5,000 Green May 70 calls, 3.0, 6.0 on strangle sale

Block, 0641:37ET, in-the-money put spd

* +8,334 Mar 73/75 put spds, 9.0

Tsy options, Pit/screen:

* 5,125 TYM 123.25/123.5 call strip, 2/64

* +2,000 TYM 117/118 put spds 2/64 over TYM 120.5 calls

* 9,750 FVM 110.25 puts on screen at .5/64

* near 18,000 TYM 123.25 calls, 1/64 on screen

* 6,000 TYN 118.5/119 put spds, 15/64

* 1,000 FVM 113.5/114/114.25 broken call trees, 5.5/64

* 2,250 Blue Mar 72/77 1x2 call sprd over Blue Mar 62 put at 2.5

* 4,000 Short Jun 72/73 1x2 call sprd at 0.5

* 17,000 Short Jun 70/72 Iron Fly at 9.0

* 1,000 USM 140/141.5 2x1 put spds, 5/64

Missed from earlier, global macro-fund buying Sep 10Y vol

* +10,000 TYU 118.5 straddles at 2-12/64 (appr 4.03% implied)

* -1,000 TYN 118.5 straddles, 1-34/64

* total -2,800 TYM 119 straddles, 1-7/64 vs. 119-04

* 2,000 TYM 119/TYN 118 put spds, 3/64

* 1,000 TYM 119 straddles, 1-7/64 vs. 119-04

* just over 14,000 FVM 112.5 puts on screen, 5- to 5.5/64 earlier

Heavy screen volume in 10Y options after yld climbed past 3.0%, latest

* over +68,000 TYM 118 puts w/>50k at 14/64, balance of flow down to 9/64

(potential package: +50k TYM 118 puts at 14 vs. -10k TYM 118.5/119.5 strangles,

44)

* over 48,000 TYM 118.5 puts, 23/64 last

* over 34,000 TYM 119 puts, 35/64 last

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

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