US TSYS: TSY LOWER AFTER NEW TRADE DEAL BETWEEN US/CANADA

US TSY SUMMARY: Tsy trading mildly lower into the bell, middle of the range with

strong volume (TYZ 1.19M), Curves steeper; Headline out last night, "Canada

Joins U.S., Mexico for Trade Deal to Replace NAFTA-BN", caused equities to climb

and bonds to fall; Light data today including U.S. ISM Manufacturing,

Construction Spending, and Markit U.S. Manufacturing PMI all having little

reaction on markets. 

-West Texas crude up after headline, "*STANCHART SAID TO BRACE FOR POSSIBLE IRAN

FINE OF ABOUT $1.5B-bbg", (WTI +2.29, 75.54).

-US$ higher DXY +.149, 95.281 (95.003L/95.373H), $/Eur lower -0.0026 at 1.1578,

$/Yen up +.24 113.94; equities higher throughout the day after last nights

headline of a trade agreement with Canada, (emini +6.00, 2925.00 vs. 2942.00H);

Gold down (XAU -2.90, 1189.60); 

-Tsy cash/ylds: 2Y 99-27.5 (2.819%), 5Y 99-18.75 (2.963%), 10Y 98-07 (3.084%),

30Y 95-15.5(3.236%).

US TSY FUTURES CLOSE: Trading mildly lower throughout the day Monday after

reports out last night, "Canada Joins U.S., Mexico for Trade Deal to Replace

NAFTA-BN". Stocks climbed as bonds fell off, strong volume (TYU 1.16M), curves

steeper; update:

* 2s10s +1.862, 25.693 (23.612L/25.879H);

* 2s30s +2.771, 41.053 (37.709L/41.138H);

* 5s30s +2.096, 27.210 (24.514L/27.550H);

Current futures levels:

* Dec Ultra bonds down 30/32 at 153-11 (153-07L/154-03H)

* Dec 30-yr Bond futures down 20/32 at 139-28 (139-24L/140-11H)

* Dec 10-yr futures down 04/32 at 118-21 (118-16.5L/118-24.5H)

* Dec 5-yr futures down 01/32 at 112-14.25 (112-10.75L/112-15.5H)

* Dec 2-yr futures down 0.25/32 at 105-11.5 (105-10.5L/105-11.75H)

US EURODOLLAR FUTURES CLOSE: Trading steady to slightly lower across the strip

in the middle of the range. Current White pack (Dec'18-Sep'19):

* Dec'18 0.000 at 97.340

* Mar'19 0.000 at 97.160

* Jun'19 -0.010 at 97.000

* Sep'19 -0.005 at 96.915

* Red pack (Dec'19-Sep'20) -0.005-EVEN

* Green pack (Dec'20-Sep'21) -0.010

* Blue pack (Dec'21-Sep'21) -0.015

* Gold pack (Dec'22-Sep'22) -0.020

US DOLLAR LIBOR: Latest settles,

* O/N -0.0006 to 2.1707% (+0.2504 last wk)

* 1 Month +0.0046 to 2.2651% (+0.0447 last wk)

* 3 Month -0.0002 to 2.3981% (+0.0257 last wk)

* 6 Month +0.0024 to 2.6062% (+0.0118 last wk)

* 1 Year +0.0069 to 2.9255% (+0.0103 last wk)

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

* Secured Overnight Financing Rate (SOFR): 2.25% vs. 2.16% prior, $807B

* Broad General Collateral Rate (BGCR): 2.24% vs. 2.15% prior, $372B

* Tri-Party General Collateral Rate (TGCR): 2.24% vs. 2.15% prior, $354B

US SWAPS: Latest spd levels:

* 2Y +0.21/16.88

* 5Y +0.00/11.75

* 10Y -0.61/5.33

* 30Y -0.83/-8.03

Eurodollar/Treasury Option Summary

Eurodollar options, Pit/screen:

* Total 20,000 Red Dec 60/62/65 put fly for net 3, BLOCK

* +5,000 Dec 72/73/76 call fly at 5.5 vs 36/0.10%

* +32,000 Long Green Dec 55 puts at 3.5

* -12,500 Dec 73/75 call sprd at 2.25

* 5,000 Red Sep 60/62 1x2 put sprd at 1.7

* -5,000 Short Dec 68 Straddle at 18.5 vs 9685/0.06%

* +20,000 Red Jun 57/60 2x1 put sprd at 0.75

* +5,000 Short Mar 83/85/86 put fly at 1.5 vs 83/0.10%, +20k all day

* -10,000 Green Nov 67 puts at 5 vs 83/0.32%

* +25,000 Red Sep 56/60 2x1 put sprd at 1.75, net on legs

* +80,000 Short Mar 63/66 put sprd at 5 vs 9682.5/0.20%

* 4,500 Short Mar 67 puts at 11.5 vs 9683/0.40%

     US TSY OPTIONS

US TSY OPTIONS: Latest trade,

* -10,000 USX 136 puts at 5

* -3,000 TYX 117.5/118.5 put sprd at 15

* +2,000 TYX 117 puts at 3 vs 17.5/0.06%

* -3,000 TYX 119 calls at 17

* +1,500 USZ 145 calls at 11 vs 07/0.10%

* +2,500 TYX 120 calls at 3 vs 19/0.11%

* Total -16,000 TYX 120/121/122 call fly at 2, all day

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

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