US TSYS: US PRES TRUMP SIGNS $1.3T SPENDING BILL

US TSY SUMMARY: Relative quiet end to hectic week, belying wide session range

w/futures mildly higher by the closing bell, seeing late rebound as equities

resumed slide (eminis falling to 2601.75L). 

- Potential risk events: Fed out of media blackout. Trio of Fed presidents

w/Bostic, Kaplan and Kashkari all supported Wed's rate hike, Kaplan expects 2018

will be a year of "strong growth". US Pres Trump conference annc signing of

$1.3T spending bill w/reservations. Little new info on Thu's China tariff annc:

Trade Office has 15 days to post offending China exports, 60 days to "propose

actions beyond CFIUS" (Comm on Frgn Invest in US) "to address concerns about

unfair acquisitions by China in U.S.". Muted China response w/$3B in tariffs to

US.

- Despite early chop, steepener interest in futures interest in futures and

conditional options packages noted. Two-way flow with better fast- and real$

buying short end, prop acct selling 5s, light deal-tied selling.

- Late ylds: 2Y 2.254%, 3Y 2.402%, 5Y 2.603%, 7Y 2.740%, 10Y 2.819%, 30Y 3.067%

US TSY FUTURES: Were looking mixed ahead the bell, near middle of wide

range/curve steeper with long end underperforming most of the session. Levels

firmed up late as equities fell to late session lows (emini -35.0, 2608.0).

Curve update:

* 2s10s +1.893, 56.059 (56.823H/52.773L);

* 2s30s +2.800, 80.764 (81.364H/77.112L);

* 5s30s +2.511, 46.274 (46.634H/44.106L);

Current futures levels:

* Jun Ultra bonds down 1/32 at 157-24 (156-28L/158-19H)

* Jun 30-yr Bond futures up 1/32 at 144-25 (144-06L/145-13H)

* Jun 10-yr futures up 3/32 at 120-19.5 (120-13.5L/120-28H)

* Jun 5-yr futures up 3.75/32 at 114-07 (114-02L/114-10.75H)

* Jun 2-yr futures up 1.25/32 at 106-09.25 (106-07.75L/106-10.25H) 

US EURODOLLAR FUTURES CLOSE: Mixed in the short end to mildly higher out the

strip, near middle session range on quiet two-way flow ahead weekend. Current

White pack (Jun'18-Mar'19):

* Jun'18 -0.005 at 97.685

* Sep'18 +0.005 at 97.615

* Dec'18 +0.020 at 97.495

* Jun'19 +0.020 at 97.390

* Red pack (Jun'19-Mar'20) +0.025-0.035

* Green pack (Jun'20-Mar'21) +0.035-0.030

* Blue pack (Jun'21-Mar'21) +0.035-0.025

* Gold pack (Jun'22-Mar'22) +0.020-0.010 

US DOLLAR LIBOR: Latest settles, 

* O/N +0.0000 to 1.6975 (+0.2513/wk)

* 1 Month +0.0035 to 1.8750% (+0.0529/wk)

* 3 Month +0.0060 to 2.2915% (+0.0898/wk)

* 6 Month +0.0024 to 2.4497% (+0.0861/wk)

* 1 Year -0.0106 to 2.6664% (+0.0519/wk)

US SWAPS: Spds running mostly/mildly by the close, spd curve flatter with short

end bucking move. Light swap-tied flow did include some short end paying,

deal-hedging ahead supply next week. Otherwise, many sidelined into shortened

Easter holiday next week. Latest spread levels:

* 2Y  +1.50/33.12

* 5Y  -0.19/15.19

* 10Y -0.19/3.94

* 30Y -0.25/-14.50

PIPELINE: No new corporate supply Friday

-

$6.2B priced Thursday, $31.4B/Wk

03/22 $750M *Abu Dhabi Commercial Bank PJSC ADCB 5Y MS +130

03/22 $1.5B *Baidu USD 5.5Y/10Y Bonds, IPT +140bp/+180bp

03/22 $1.3B *Assurant Inc. 3NC1 FRN, 5.5Y, 10Y, 30NC10 Sub

03/22 $1B *Prudential Financial; 10Y +105, 30Y +135

03/22 $600M *Mississippi Power 2y FRN L+75, 10Y +125A

03/22 $1.05B *Cequel Communications $1.05b 10NC5 Sr

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

- Mar 26 Mar Dallas Fed manufacturing index (37.2, --) 1030ET

- Mar 26 Clev Fed Pres Mester Julis-Rabinowitz Center for Public Policy &

Finance at Princeton Univ, New Jersey, audience Q&A. 1630ET

     Eurodollar/Treasury Option Summary

Eurodollar options, Pit/screen:

* +3,000 May 77/78 1x2 call spds, 1.0

* -4,000 Jul/Sep 75/76 call spd strip, 13.5

* +4,000 short May 71/72 strangles, 12.5

* -2,000 Blue Mar 70 straddles, 58.0

* -10,000 short Jun 70/75 call over risk reversals, 2.0

* total +15,000 short Apr 71 puts, 1.0

Block, 1232-1233ET, adds to +30k in pit earlier

* total +20,000 Apr 78 calls, 0.5

* +33,500 Red Dec'19 67/72 call over risk reversals, 12.5 vs. 97.16/0.74%

* +40,000 short Jun 68/71 call spds vs. -15.000 short Jun 75/76 put spds, mostly

0.0 (5k 0.5cr)

* +10,000 short Jun 70/71 put spds, 2.5

* 7,000 Jun 76/77 call spds, 5.5

* 7,000 Jun 75/76 put spds, 5.5

* 6,000 Sep 75/76 put spds, 6.0 vs. 97.60/0.22%

* 2,000 Sep 70/71/72 put flys, 2.5

* 2,000 Blue Jun 66/68 put spds, 4.0 vs. 97.095

Large put spd strip cover late 2019 downside

* +35,000 Red Dec'19 66/71 put spds, 18.5 w/

* +35,000 Red Dec'19 67/71 put spds, 15.0, 33.5 total on package vs. 97.12

* +20,000 Apr 78 calls, 0.5

* +5,000 Sep 71/72 put spds, 0.5

* -2,000 Jun 76 straddles 10.0 over Jun 77 calls

* total +5,000 Green Jun 68/70/71 put trees, 0.5

* -2,000 Red Dec 72 straddles, 42.5

* +2,500 Green Jun 68/70/71 put trees, 0.5

* 2,500 Sep 75/77 call spds, 11.0

Tsy options, Pit/screen:

* +5,000 USK 134 puts, 1/64

* -3,000 TYK 120/121.5 strangles, 29/64

* -2,000 TYK 121 calls, 20- to 19/64

* -4,000 wk1 10Y 121/121.5 2x3 call spds, 7/64 earlier

* +4,000 FVM 114 straddles, 59/64

Overnight screen trade, better upside call buying

* +15,000 TYK 122/123 call spds, 6/64

* +9,000 TYK 122/124 call spds 2/64 over the TYK 119 put

* +5,000 TYK 122 calls, 9/64

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

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