US TSYS: TSY OFF MIDDAY HIGHS, FOCUS ON NEXT WK'S FOMC MINUTES

US TSYS SUMMARY: Trading well off session highs, near opening levels by Friday's

closing bell, all-in-all a quiet day of trade heading into the extended

Presidents Day holiday weekend. Limited data react, focus on next wk's Jan FOMC

minutes on Wed.

- Substantial sell programs went equities after headline that "MUELLER INDICTS

13 RUSSIANS FOR HACKING DURING U.S. ELECTION" bbg made rounds. Equities trimmed

gains/traded lower into Tsy close (emini ), Tsys initially bounced after falling

back to near opening levels. VIX tapped 20.99 in late trade, bounced off 17.44

low on Russia headlines; US$ index heading higher (DXY +.519, 89.112). Large

Eurdlr steepener Block +40k EDZ8/9, +0.345.

- Swap spds ran mostly wider, long end off midday highs. Front end held tighter

w/accts fading the move via payers in 2s from 2.469%-2.4625%. Other flow

includes 4Y switch, $51.3k DV01 2s5s steepener and $147k DV01 5s10s steepener,

$225k 4s7s10s fly receiving the belly.

- Late ylds: 2Y 2.187%, 3Y 2.384%, 5Y 2.624%, 7Y 2.804%, 10Y 2.875%, 30Y 3.135%

US TSY FUTURES CLOSE: Mildly higher by the close, well off midday highs to near

bottom of session range, gradually paring gains in second half. Latest curve

update:

* 2s10s -3.787, 68.314 (71.279H/66.130L);

* 2s30s -3.151, 94.370 (96.616H/91.177L);

* 5s30s -0.132, 50.990 (51.127H/48.642L);

Current futures levels:

* Mar Ultra bonds up 6/32 at 156-14 (155-17L/157-13H)

* Mar 30-yr Bond futures up 6/32 at 144-06 (143-18L/144-27H)

* Mar 10-yr futures up 4/32 at 120-18.5 (120-09.5L/120-25H)

* Mar 5-yr futures up 2.5/32 at 114-09.5 (114-04.5L/114-12H)

* Mar 2-yr futures up .5/32 at 106-17.25 (106-15.75/106-17.75H)

US EURODOLLAR FUTURES CLOSE: Mostly higher by the close, short end weaker all

session despite large steepener Block (+40k EDZ8/EDZ9, .345). Current White pack

(Mar'18-Dec'18):

* Mar'18 -0.020 at 97.955

* Jun'18 -0.010 at 97.775

* Sep'18 +0.005 at 97.665

* Dec'18 +0.015 at 97.540

* Red pack (Mar'19-Dec'19) +0.020-0.015

* Green pack (Mar'20-Dec'20) +0.020-0.025

* Blue pack (Mar'21-Dec'21) +0.025

* Gold pack (Mar'22-Dec'22) +0.020-0.025

US SWAPS: Spds running mostly wider by the bell, long end off midday highs/pared

move in second half. Front end holding tighter with some accts fading the move

via payers in 2s from 2.469%-2.4625%. Other flow includes 4Y switch, $51.3k DV01

2s5s steepener and $147k DV01 5s10s steepener, $225k 4s7s10s fly receiving the

belly. Latest spread levels:

* 2Y  -1.50/27.00

* 5Y  +0.12/10.00

* 10Y +0.44/1.94

* 30Y +0.62/-15.50

PIPELINE: Quiet End To Wk After $7B IG Issuance

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

No new issuance reported Friday

Potential upcoming issuance in the near term:

Chatter, 3M (MMM) A1/AA-

Chatter, Bank of New Zealand (BZLNZ) A1/AA-

Chatter, KeyBank 

Chatter, Fifth Third Bank (FITB) A3/A

Chatter, State Street Corp (STT) A1/A

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

- Feb 19 US Presidents Day Holiday market close

- Feb 20 Feb Philadelphia Fed Nonmfg Index (19.5, --) 0830ET

- Feb 20 $55B US Tsys 4Wk, $51B 3M and $45B 6M bill auctions 1130ET

- Feb 20 $28B US Tsys 2Y note auction 1300ET

Eurodollar/Treasury Option Summary

Eurodollar options, Pit/screen:

Block, 1237:34ET

* 10,000 Jun 80/81 1x2 call spds, 0.0 vs. 97.75/0.05%

* +40,000 Mar 81 calls, 0.5 vs. 97.95-955

* 5,000 Mar 77/78 put spds, 0.75 vs. 97.96/0.15%

* 5,000 Mar 78 puts, 1.25 vs. 97.45/0.10%

* Update, total +9,000 Green Jun 73/Gold Jun 72 call spds, 0.0/steepener

* +15,000 Apr/Jun 76 put strip, 2.0

* -15,000 short Apr 72/73/75 put flys, 2.5 vs. 97.335/0.16% vs.

* +7,500 short Apr 71/73/75 put flys, 3.0

* -7,000 Mar 78/80 put spds, 5.5

* +10,000 Blue Apr 75 calls,2.0

* Update, total 7,000 Sep 73/75/76 put flys, 3.0

* 10,000 short Jun 71/72/73 put flys, 2.0

* 10,000 Apr 76 puts, 0.75 vs. 97.77/0.06%

* 5,000 Sep 73/75/76 put flys, 3.0

* +25,000 Red Jun 67/68 put spds, 2.5 vs. 97.305/0.10%

* +10,000 Red Dec 60/65 2x1 put spds, 3.5

* -2,000 long Green Mar 71 straddles, 66.5

* -2,500 short Mar 75 straddles, 15.0

* 2,000 Green Apr 68/76 put over risk reversals, 1.5 vs. 97.155

* +4,000 short Apr 71/73 put spds, 10.0

* +3,500 Sep 73/75/76 put flys, 3.0

* -2,500 Sep 75/77 put spds, 12.5, adds to 45k on screen

* Update, total -45,000 Sep 75/77 put spds, 12.5

* 22,000 Mar 78 puts, 1.0

* 11,100 Mar 80/81 call spds, 1.25

* 7,5000 short Mar 73/75 put spds 4.0 over the short Mar 75 calls, 5k Blocked

* 6,000 short Jun 75/76 1x2 call spds

Block, 0746:45ET

* -22,986 Jun 76/77 put spds, 4.0

* -10,000 Sep 75/77 on screen couple minutes later, 25k total

Tsy options, Pit/screen:

* 2,000 USK 140 puts, 42/64 vs. 143-23/0.22%

* 2,100 TYH 119.25/119.75 2x1 put spds, 1/64

* 5,000 TUJ 106.6/106.8 call spds, 1.5/64

* -5,000 TYJ 121.5 calls, 11/64

* 1,000 TYM 120 straddles, 2-11/64

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

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