US TSYS: TSYS WEAKER AMID ONGOING BREXIT AMENDMENT VOTING

US TSY SUMMARY: Tsys trade weaker amid ongoing Brexit amendment voting. Front

end received a boost on China trade headline that Pres Trump "not in a hurry" to

complete deal. Futures moderated quickly, curves extended steepening on

continuing Brexit amendment votes: rejecting no-deal exit narrowly PASSES

(312-308; Spelman/Dromey proposal); rejecting managed no-deal / extension to

Article 50 to May 22. 

- Equities firmer into the close (SPX + ); US$ index bumping around late session

lows (DXY -.435, 96.500; 96.478L).

- Another quiet day for rates, light futures volume (TYM<950k). Modest two-way

in front end from props, trading accts, swap-tied buying 5s-7s, better selling

long end on net.

- On tap for Thursday: Weekly claims; February imports/exports price indexes;

January new home sales.

- Tsy cash/ylds: 2Y 100-02.5 (2.453%), 5Y 99-25.75 (2.415%), 10Y 100-04

(2.609%), 30Y 99-27 (3.007%).

US TSY FUTURES CLOSE: Trades steady/mixed after the bell, front end received a

boost on China trade headline that Pres Trump "not in a hurry" to complete deal.

Futures moderated quickly, curves extended steepening on continuing Brexit

amendment votes: rejecting no-deal exit narrowly passes (312-308; Spelman/Dromey

proposal). Update:

* 2s10s +0.955, 15.437 (14.201L/15.976H);

* 2s30s +2.006, 55.455 (52.676L/55.933H);

* 5s30s +1.251, 59.355 (57.324L/59.683H);

Current futures levels:

* Jun Ultra bonds down 14/32 at 162-06 (161-25L/162-22H)

* Jun 30-yr Bond futures down 9/32 at 146-04 (145-28L/146-13H)

* Jun 10-yr futures steady at 122-28 (122-22L/122-29H)

* Jun 5-yr futures up .25/32 at 115-00 (114-28.25L/115-00.5H)

* Jun 2-yr futures up .12/32 at 106-07.12 (106-05.75L/106-07.38H)

US EURODLR FUTURES CLOSE: Steady/mixed after the bell, at/near top end narrow

session range. Current White pack (Mar'19-Dec'19):

* Mar'19 -0.005 at 97.392

* Jun'19 -0.005 at 97.395

* Sep'19 +0.005 at 97.415

* Dec'19 -0.005 at 97.405

* Red pack (Mar'19-Dec'20) steady to +/-0.005

* Green pack (Mar'20-Dec'21) steady to +/-0.005

* Blue pack (Mar'21-Dec'21) steady to +/-0.005

* Gold pack (Mar'22-Dec'22) steady to +0.010

US DOLLAR LIBOR: Latest settles

* O/N -0.0003 to 2.3901% (+0.0033/wk)

* 1 Month -0.0049 to 2.4837% (-0.0078/wk)

* 3 Month +0.0177 to 2.6109% (+0.0143/wk)

* 6 Month -0.0057 to 2.6764% (-0.0026/wk)

* 1 Year -0.0095 to 2.8590% (-0.0046/wk)

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

* Secured Overnight Financing Rate (SOFR): 2.39%, $916B

* Broad General Collateral Rate (BGCR): 2.37%, $470B

* Tri-Party General Collateral Rate (TGCR): 2.37%, $448

US SWAPS: Spds mostly tighter by the bell, short end resists wile long end

extends inversion late. Moderate flow since the open includes two-way in 3s

w/better paying around 2.5125-2.5180%, receivers in 5s-7s, and paying in 10s at

2.6325%. Two-way fly action includes 2s5s10s receiver fly, 2s6s8s payer fly.

Latest spd levels:

Time (ET)   2Y Swap/Mid   5Y Swap/Mid   10Y Swap/Mid   30Y Swap/Mid

Wed 3:00    +0.31/11.88   -0.19/6.56     -0.31/1.12    -1.06/-21.25

1:45        +0.44/12.00   -0.06/6.69     -0.31/1.12    -0.75/-20.94

11:00       +0.38/11.94   -0.19/6.56     -0.38/1.06    -0.56/-20.75

9:45        +0.56/12.12   -0.06/6.69     -0.25/1.19    -0.31/-20.50

Wed Open    +0.44/12.00   +0.12/6.88     +0.12/1.56    +0.00/-20.19

Wed 7:30    +0.19/11.75   +0.06/6.81     +0.12/1.56    -0.06/-20.25

Tue 3:00    -0.94/11.62   -0.88/6.62     -0.66/1.38    -0.50/-20.12

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

14-Mar 0830 09-Mar jobless claims (220k, 225k)

14-Mar 0830 Feb imports price index (-0.5%, 0.4%)

14-Mar 0830 Feb exports price index (-0.6%, --)

14-Mar 1000 Jan new home sales (621k, 624k)

14-Mar 1030 08-Mar natural gas stocks w/w (-149 Bcf, --)

14-Mar 1630 13-Mar Fed weekly securities holdings

PIPELINE: Citigroup 11NC10 launched, leads w/$2.5B

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

03/13 $2.5B #Citigroup 11NC10 +137.5

03/13 $1.5B #United Parcel Service $750M 10Y +80, $750M 30Y +125

03/13 $1B *MuniFin WNG 5Y +14

03/13 $350M Entergy Arkansas WNG 30Y +135a

Eurodollar/Tsy options:

Eurodollar options, Pit/screen: (March expires Fri)

* -10,000 Jun 73/75 1x2 call spds, 2.0

* +3,000 Green May 76/77 call spds 2.5 over Blue May 75/76 call spds

* +5,000 Dec 75/77 1x2 call spds, cab

* -5,000 Dec 73 straddles, 23.0 vs. 97.395

* -6,000 Jun 73/75 1x2 call spds, 2.0 vs. 97.385/0.26%

* +20,000 Red Mar'2 70/71/72 put flys, 1.5 vs. 97.44/0.05%

* +2,500 short Apr 73/76 strangles, 5.0

* +5,000 Dec 2x1 put spds, 5.5 earlier

* +5,000 Green Apr 75 puts, 3.0

* +23,500 Red Mar'20 77/80 call spds on screen recently, 3.5 vs. 97.475

* -20,000 Red Mar'20 72/76 strangles, 18.0

* +5,000 short May/Green May 75 put spds, 3.5 net conditional bear curve

flattener

* +10,000 Jun 73 call/Sep 71 put strangles, 4.75

* +3,000 short Mar 75 calls, 1.0

* 1,500 Red Mar'20 75 straddles, 33.5

Tsy options, Pit/screen:

* 4,100 FVJ 115 calls, 8.5/64 vs. 114-30.25/0.45%

* 2,000 TYJ 122/TYK 122.5 put spds, 23/64 vs. 122-25.5/0.30%

* +10,000 TYK 122 puts, 15/64 vs. 122-25.5 to -26

* 2,250 TYJ 122.5 puts. 8/64 vs. 122-26.5

* 2,500 wk3 TY 122.5/123call spds, 17/64

* 3,000 TYM 123.5 calls, 29/64 vs. 122-27/0.30% earlier

* -5,000 TYK 122.5 puts, 28/64 vs. 122-22.5/0.38%, additional 1,500 puts sold

vs. futures on 0.42% delta

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

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