US TSYS: TSY FUTURES AND GOLD HIGHER AS EQUITIES FALL

US TSY SUMMARY: Tsy trading mildly higher near the top of the range; moderate

volume (TYH 975k); Curves steeper. Today's data was led by US Empire

Manufacturing came in softer than expected which led to Tsy futures firming; US

NAHB Housing Market Index also came in weaker than expected;

-Trump took to twitter this morning to voice his opinion on this weeks FOMC

meeting, "*TRUMP SAYS FED `EVEN CONSIDERING' RATE HIKE IS `INCREDIBLE'-bbg"

-In the UK, "*CORBYN TO CALL FOR VOTE OF NO CONFIDENCE IN PM MAY: BBC". Shortly

after the headline, "*MAY SAYS TO HOLD BREXIT DEAL VOTE IN PARLIAMENT WEEK OF

JAN. 14-bbg"

-Equities dropped lower this afternoon (emini -50.00, 2555.50) with a low of

2553.75. Heading into Wednesday's FOMC meeting, the S&P 500 was down 8.16% since

its last meeting in November.  

-WTI down (WTI -1.74, 49.46), DXY fell -.330, 97.113 (97.052L/97.459H), $/Eur up

+0.0043 at 1.1349, $/Yen down -0.64 112.75; Gold up (XAU +7.41, 1245.85)

-Tsy cash/ylds: 2Y 100-2.75 (2.700%), 5Y 100-26.25 (2.695%), 10Y 102-8.5

(2.859%), 30Y 105-00 (3.116%).

US TSY FUTURES CLOSE: Trading mildly higher near the top of the range; moderate

volume (TYH 975k); curves steeper; update:

* 2s10s +0.067, 15.504 (14.650L/16.043H);

* 2s30s +0.335, 41.157 (40.206L/41.883H);

* 5s30s +0.747, 41.854 (40.690L/42.544H);

Current futures levels:

* Mar Ultra bonds up 25/32 at 157-30 (156-31L/158-01H)

* Mar 30-yr Bond futures up 16/32 at 143-07 (142-20L/143-09H)

* Mar 10-yr futures up 08/32 at 120-20.5 (120-10.5L/120-21.5H)

* Mar 5-yr futures up 4.75/32 at 113-22.5 (113-16L/113-23.25H)

* Mar 2-yr futures up 2.25/32 at 105-23.75 (105-20.75L/105-24.25H)

US EURODOLLAR FUTURES CLOSE: Trading mildly higher at or near the top of the

range; moderate volume. Current White pack (DEC'18-SEP'19):

* DEC'18 +0.0014 at 97.1964

* MAR'19 +0.025 at 97.245

* JUN'19 +0.035 at 97.200

* SEP'19 +0.040 at 97.165

* Red pack (DEC'19-SEP'20) +0.045-0.035

* Green pack (DEC'20-SEP'21) +0.035-0.030

* Blue pack (DEC'21-SEP'22) +0.025

* Gold pack (DEC'22-SEP'23) +0.030-0.025

US DOLLAR LIBOR: Latest settles,

* O/N -0.0034 to 2.1813% (-0.0034/wk)

* 1 Month +0.0146 to 2.4696% (+0.0146/wk)

* 3 Month +0.0029 to 2.8036% (+0.0029/wk)

* 6 Month +0.0041 to 2.9046% (+0.0041/wk)

* 1 Year +0.0062 to 3.1039% (+0.0062/wk)

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

* Secured Overnight Financing Rate (SOFR): 2.21% vs. 2.21% prior, $867B

* Broad General Collateral Rate (BGCR): 2.19% vs. 2.18% prior, $425B

* Tri-Party General Collateral Rate (TGCR): 2.19% vs. 2.18% prior, $406B

US SWAPS: Latest spd levels:

* 2Y +0.14/14.83

* 5Y +0.40/10.70

* 10Y +0.55/3.70

* 30Y +0.75/-13.55

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

Dec 18 Nov housing starts (1.228m, 1.220m) 0830ET 

Dec 18 Nov building permits (1.265m, 1.260m) 0830ET 

Dec 18 Dec NY Fed Business Leaders Index (8.6, --) 0830ET 

Dec 18 15-Dec Redbook retail sales m/m (-0.5%, --) 0855ET 

Dec 18 - FOMC policy meeting kicks off

Eurodollar/Treasury Option Summary

Eurodollar options, Pit/screen:

* 3,000 Jun 72/73/75 call fly at 2 vs 9719/0.05%

* 3,000 Red Dec 68/71 put sprd at 11

* 4,000 Mar 70/71 3x2 put sprd at 3.5 vs 9722.5/0.25%

* 4,000 Short Mar 67/68 2x1 put sprd at 0.5 vs 9712.5/0.10%

* 4,000 Short Feb 67/68/70 put fly at 2 vs 9712/0.10%

* 8,000 Short Mar 73/75 call sprd vs Jun 75 calls for net 0 vs 9716.5/0.10%

* 2,750 Green Jan 70/75 calls over risk reversal at 0 vs 9722/0.20%

* 5,000 Jun 66/68 put sprd at 1.25 vs 9718.5/0.10%

* 7,000 Red Dec 67/70 put sprd at 8 vs 9712.5/0.25%

* -5,000 Short Jan 71 Straddle at 14

* -4,250 Blue Mar 72 Straddle with Short Mar 71 Straddle sprd at 1

* -4,250 Short Mar 68 puts at 0.5 over the Blue Mar 68 puts

* +10,000 Blue Feb 72 Straddle with Short Feb 71 Straddle sprd at 0

* 8,000 Mar 68 puts at 0.5 vs 9721.5/0.05%

* 9,250 Mar 71 Straddle at 15.5 vs 9721/0.42%

* 3,500 Red Mar 63/65 put sprd at 1 vs 9720.5/0.10%

* 2,500 Mar 70/71 put sprd at 2 vs 9723/0.10%

     US TSY OPTIONS

US TSY OPTIONS: Latest trade,

* +2,500 TYF 120.5/121 1x2 call sprd at 5

* -2,000 FVF 113.75 calls at 8.5, total 3,500 all day from 8 to 8.5

* +2,000 TYG 122/122.5/123 call fly at 2 vs TYH 24.5/0.05%

* +1,750 USF 143 calls at 40

* +51,600 TYG9 121.5/122.5 call sprd at 9 

* +2,000 FVF 113.5/113.75 calls over risk reversal at 1.5

* -5,000 TYG 122/123.5 1x2 call sprd at 2 vs 12/0.05%

* 2,700 FVF 114.25 calls at 1 vs 18.5/0.10%

* -1,500 TYF 120.75 calls at 10

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

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