US TSYS: US/IRAN DOMINATE HEADLINES AS TENSIONS RISE

US TSY SUMMARY: Tsys trade mixed into the bell with the long end slightly

outperforming the short end, middle of the range on low volume (TYU 800k),

curves mixed; light data today has focus on headlines

-IRAN: Headlines out today; "TRUMP OUTLINES IRAN SANCTIONS PUSH IN

STATEMENT"-BFW, "TRUMP: THOSE WHO DON'T EXIT IRAN ACTIVITIES RISK

CONSEQUENCES"-BFW, "*ROUHANI SAYS IRAN OPEN TO NEGOTIATIONS IF U.S. IS

'SINCERE'"-BFW

-CHINA: "GRAINS/SOY: Rising U.S.-China Trade Tensions Drive Soybeans Down"-BFW

-CAD underperformed as Saudi Arabia severed investment ties with Canada after a

spat over Canada's call for the release of political activists

-GBP/USD hits YTD low ($1.2954) as it becomes more likely that the UK will leave

the EU without a trade deal

-DXY higher +.208 to 95.369, US$/Yen stronger (JPY +.15, 111.40,

111.53H/111.15L); equities higher (emini +9.50, 2,849.00); West Texas Crude (WTI

+0.31, 68.80); gold weaker (XAU -6.10, 1207.55); Tsy cash/ylds: 2Y 99-30.5

(2.647%), 5Y 99-23.75 (2.804%), 10Y 99-15 (2.936%), 30Y 100-25 (3.084%).

US TSY FUTURES CLOSE: Trading mixed with the long end outperforming the short

end, middle of the range, Curves mixed; update:

* 2s10s -1.503, 28.649 (27.758L/30.489H);

* 2s30s -0.889, 43.447 (42.015L/44.485H);

* 5s30s +0.533, 27.800 (26.411L/27.880H);

Current futures levels:

* Sep Ultra bonds futures up 08/32 at 156-27 (156-14L/157-12H)

* Sep 30-yr Bond futures up 07/32 at 143-06 (142-28L/143-18H)

* Sep 10-yr futures up 04/32 at 119-23.5 (119-17L/119-27H)

* Sep 5-yr futures up 01.25/32 at 113-10.75 (113-7.5L/113-12.75H)

* Sep 2-yr futures down 0.5/32 at 105-23.5 (105-23L/105-24.25H)

US EURODOLLAR FUTURES CLOSE: Trading steady to slightly higher, light volume

(TYU 792k), long end outperforming the short end. Current White pack

(Sep'18-Jun'19):

* Sep'18 0.000 at 97.585

* Dec'18 0.000 at 97.335

* Jun'19 0.000 at 97.185

* Jun'19 +0.005 at 97.080

* Red pack (Sep'19-Jun'20) +0.015-0.005

* Green pack (Sep'20-Jun'21) +0.020-0.015

* Blue pack (Sep'21-Jun'21) +0.025-0.015

* Gold pack (Sep'22-Jun'22) +0.025-0.020

TECHNICALS: 

US DOLLAR LIBOR: Latest settles,

* O/N +0.0050 to 1.9200% (+0.0050/wk)

* 1 Month +0.0032 to 2.0825% (+0.0032/wk)

* 3 Month +0.0002 to 2.3432% (+0.0002/wk)

* 6 Month -0.0031 to 2.5216% (-0.0031/wk)

* 1 Year -0.0005 to 2.8268% (-0.0005/wk)

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

* Secured Overnight Financing Rate (SOFR): 1.86% vs. 1.91% prior, $763B

* Broad General Collateral Rate (BGCR): 1.83% vs. 1.90% prior, $403B

* Tri-Party General Collateral Rate (TGCR): 1.83% vs. 1.90% prior, $384B

US SWAPS: Latest spd levels:

* 2Y +0.18/21.52

* 5Y -0.13/14.75

* 10Y -0.13/7.25

* 30Y -0.30/-4.68 

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

- Aug 07 04-Aug Redbook retail sales m/m 0855ET

- Aug 07 Aug IBD/TIPP Optimism Index (56.4, --) 1000ET

- Aug 07 Jun JOLTS job openings level (6638k, --) 1000ET

- Aug 07 Jun JOLTS quits rate (2.4%, --) 1000ET

- Aug 07 US Tsy $34B 3Y Note auction, 1300ET

- Aug 07 Jun consumer credit ($24.6B, $15.4B) 1500ET

- Aug 07 Jul Treasury Allotments (final) 1500ET

Eurodollar/Treasury Option Summary

Eurodollar options, Pit/screen:

* 12,000 Green Dec 66/68 put sprd at 19 vs 9694/0.66%

* 4,000 Oct 72 puts at 1.25 vs 9733/0.24%

* -4,000 Green Oct 70 Straddle at 23 vs 9697/0.08%

* 5,000 Oct 75/77 1x2 call sprd at 0.5

* -7,500 Green Dec 73 calls at 4.5 vs 9697/0.16%

* 10,000 Jun 72 calls at 9.5 vs 9708.5/0.34%, BLOCK

* -7,000 Blue Sep 67 puts at 1.5 vs 9699/0.10%

* 6,000 Sep 77 calls at CAB vs 9759/0.05%

* -5,000 Mar 72/75 put sprd at 19

* +5,000 Dec 70/71/72 put fly at 2.25 vs 9732.5/0.10%

* 6,000 Sep 73/75 2x1 put sprd at CAB

* 10,000 Sep 77 calls at CAB vs 9759.5/0.05%

US TSY OPTIONS: Latest trade,

* +7,000 TYU 120 calls at 18

* -5,000 TYV 118 puts at 8

* -10,000 TYU 118.5 puts at 3

* -5,000 TYV 118 puts trades 10

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

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