US TSYS: TSY CURVES STILL FLATTER ON WEEK

US TSY SUMMARY: Tsys trade weaker into the close, extending session lows late.

midday Tsy bounce as equities sold off earlier, partially tied to drop in FANG

shares ahead earning next wk for AMZN and GOOGL also story made rounds China

contemplating Apple products ban.

- Otherwise, US$ index remains strong (DXY +0354, 90.294; US$/Yen>107.61);

equitys lower (emini -21.5, 2671.5); gold weaker (XAU -8.81, 1336.78); West

Texas crude off lows/near steady (WTI +0.03, 68.32).

- Tsys opened mildly mixed,  middle of relatively narrow range after some

overnight chop tied to Gilts. Gilt volatility on BoE Gov Mark Carney comments

suggesting May rate hike not necessarily a done deal/could come later this year.

Short end Eurodlr buys (EDM8) after 3M LIBOR set -0.0023 to 2.3592%.

- After rejecting 10+ year lows early Wed, Tsy yld curves continue to bounce

(2s10s +1.622, 49.441; 2s30s +1.629, 68.291; 5s30s +.581, 34.744). Weaker hands

unwound flatteners, others are fading move, expect eco slowdown after '18 rate

hikes have run course. Mixed two-way flow/day, better sales, no corp supply 

- Late ylds: 2Y 2.453%, 3Y 2.611%, 5Y 2.791%, 7Y 2.905%, 10Y 2.951%, 30Y 3.142%

US TSY FUTURES CLOSE: Near session lows by the bell. Curve update:

* 2s10s +1.391, 49.211 (49.441H/47.204L);

* 2s30s +1,790, 68.452 (68.552H/66.348L);

* 5s30s +0.471, 34.634 (35.555H/34.013L);

Current futures levels:

* Jun Ultra bonds down 29/32 at 156-00 (155-29L/157-06H)

* Jun 30-yr Bond futures down 20/32 at 143-05 (143-03L/143-31H)

* Jun 10-yr futures down 9/32 at 119-17.5 (119-17.5L/119-29.5H)

* Jun 5-yr futures down 4.75/32 at 113-14.25 (113-14L/113-21H)

* Jun 2-yr futures down .75/32 at 106-01 (106-0.75L/106-02.75H)

US EURODOLLAR FUTURES CLOSE: Eurodollar futures bumping around session lows into

the close, short end continues to outperform. Current White pack

(Jun'18-Mar'19):

* Jun'18 +0.005 at 97.620

* Sep'18 +0.000 at 97.505

* Dec'18 -0.010 at 97.365

* Jun'19 -0.015 at 97.255

* 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) -0.035-0.040

* Gold pack (Jun'22-Mar'22) -0.040

US DOLLAR LIBOR: Latest settles,

* O/N +0.0000 to 1.7031% (+0.0012/wk) 

* 1 Month -0.0013 to 1.8969% (+0.0014/wk)

* 3 Month -0.0023 to 2.3592% (+0.0064/wk)

* 6 Month +0.0018 to 2.5112 (+0.0212/wk)

* 1 Year +0.0019 to 2.7603% (+0.0202/wk)

     REPO REFERENCE RATES: (rate, volume)

* Secured Overnight Financing Rate (SOFR): down to 1.73% vs. 1.75% prior, $745B

* Broad General Collateral Rate (BGCR): down to 1.67% vs. 1.69%, $344B

* Tri-Party General Collateral Rate (TGCR): down to 1.67% vs. 1.79%, $330B

US SWAPS: Spds mostly wider after the bell, well off early narrow on modest

flow, no deal-tied flow after heavy +$47B corp issuance this week. Decent

overnight flow includes 5Y switch, 10Y switch around 2.942-2.940%, $111.3k DV01

2Y-5Y STEEPENER, $170mln+ receiver of USD 7Y at 2.8975%, $180.8k 2Y-3Y-4Y Fly,

paying the belly. Earlier overnight included better receivers, deal-tied flow in

7s and 10s. Latest spd levels:

* 2Y  -0.81/28.12

* 5Y  +0.12/11.88

* 10Y +0.75/3.50

* 30Y +0.81/-12.50

PIPELINE: $11.75B Priced Thursday, $47.2B on week, no new issuance Friday

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

04/19 $3.75B *Morgan Stanley 2-part, 6NC5 +68, 21NC20 +135

04/19 $3.5B *JP Morgan Case Bank $2.2B 3NC2 fix-FRN +65, $1.3B 3NC2 3ML+34

04/19 $1B *Meiji Yasuda Life 30NC10 5.1%

04/19 $1.75B *EBRD 3Y NS -3

04/19 $1.75B *Rabobank $1B 3Y fix +65, $750M 3Y FRN +43

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

- Apr 21 Fed media Blackout begins, runs through May 3, day after next FOMC annc

- Apr 23 Apr Markit Services Index (flash) (54.0, --) 0945ET

- Apr 23 Apr Markit Mfg Index (flash) (55.6, --) 0945ET

- Apr 23 Mar existing home sales (5.54m, 5.54m) 1000ET

- Apr 23 Apr Treasury Allotments 1500ET

Eurodollar/Treasury Option Summary

Eurodollar options, Pit/Screen:

* 3,000 Blue May 70 Straddle at 13.5 vs 9698/0.10%

* -10,000 May 76 Straddle at 5.25

* 8,000 March 70/71 put sprd at 4.0 vs 9726.5/0.12%

* +2,000 TYN 117.5/118.5 3x1 put spds, 8/64

*UPDATE: Total 10,000 March 67/68 put sprd at 1.5

* 7,000 Sep 68/71 put sprd 2x1 at 1.5

UPDATE: 45,000 Short Sep 67 put at 3.0 vs 9707.5-08.5/0.10%

* 75,000 March 67 puts at 1.5

* 8,000 March 67/68 put sprd at 1.5

* 25,000 Short Sep 67 put at 3.0 vs 9707.5/0.10%

* 2,000 Green June 68 put at 5.0 vs 9701/0.30%

* 8,500 March 67 put at 1.5 vs 9724/0.10%

* 4,000 Short June 73/75 call sprd at 1.0 vs 9715/0.10%

* 6,000 Short June 72/73 call sprd at 2.5

* 4,000 71/72 Short May put sprd at 7

* +21,500 Blue June 66 put at 1.5 on screen

* 2,000 Short Sep 72/73/75 call tree at even

* 1,000 Dec 68/70 put sprd at 0.5

UPDATE: Total 7,000 June 76 straddle at 9

* +35,000 June 75 puts at 0.5* 6,000 June 76 Straddle at 9.0

* 10,000 Short June 70/71 put strips at 8.0-8.5 vs 10,000 short June 75 calls at

1.0

* 5,900 67/68/70 put tree at 1.5

* 1,250 Dec 75/77 put sprd 3x2 at 20.5

* 1,200 Dec 72/75 put sprd 2x1 at 7

* 1,500 Short May/Short June 71 put strip at 7.0

Tsy options, Pit/screen:

* 3,000 TYM 118/119 put strip, 20/64 vs. 119-25.5 to -26/0.36%, adds to >20k on

screen overnight

* +2,000 TYM 123/126.5/129 call flys, 1/64

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

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