US TSYS: US$ SOARS WHILE TURKISH LIRA FREE FALLS

US TSY SUMMARY: Tsys trading higher into the bell, strong volume (TYU 2.06M),

curves mixed; CPI data suggests steady gains in consumer inflation, that should

allow the FOMC to maintain its gradual rate hike path; Headlines dominate Friday

as Turkish Lira free falls, settled at 6.4/US$; Trump added pressure, "*TRUMP

AUTHORIZES DOUBLING OF TARIFFS ON TURKEY STEEL, ALUMINUM-BFW", "*LIRA DROPS TO

NEW RECORD AS TRUMP STEPS UP TARIFFS ON TURKEY-BFW"; "Turkey Will Take

'Necessary Response' to Increased U.S. Tariffs-BFW"; "Reuters Top News: Turkey

turmoil sends ripples across world stock markets, euro falls-TWT"

-PBOC made headlines, "*PBOC SAYS INSIST NOT TO HAVE 'STRONG' STIMULUS-BFW";

"*PBOC STILL SEES POSITIVE ELEMENTS FOR STABLE ECONOMIC GROWTH-BFW";

-DXY making large gains today (+0.859, 96.363, 96.452H/95.532L) hitting its

highest level since July 2017

-Equities taking a hit (emini -25.75, 2,828.00), West Texas Crude (WTI +0.85,

67.66), US$/Yen down (JPY -0.45, 110.64); Gold (XAU -0.85, 1211.55); Tsy

cash/ylds: 2Y 100-01.5 (2.596%), 5Y 100-02.5 (2.731%), 10Y 100-04 (2.859%), 30Y

99-20 (3.019%).

US TSY FUTURES CLOSE: Trading higher at the top of a wide range, strong volume

(TYU 2.06M), Curves mixed; update:

* 2s10s -1.757, 25.890 (25.246L/27.419H);

* 2s30s -0.010, 42.232 (40.526L/42.990H);

* 5s30s +2.452, 28.705 (25.774L/28.785H);

Current futures levels:

* Sep Ultra bonds futures up 1-21/32 at 158-21 (157-06L/158-28H)

* Sep 30-yr Bond futures up 1-08/32 at 144-17 (143-12L/144-22H)

* Sep 10-yr futures up 20/32 at 120-11 (119-23.5L/120-13H)

* Sep 5-yr futures up 12/32 at 113-21.75 (113-10L/113-23.25H)

* Sep 2-yr futures up 3.5/32 at 105-27.5 (105-23.75L/105-27.75H)

US EURODOLLAR FUTURES CLOSE: Trading higher across the strip at the top of a

large range, strong volume. Current White pack (Sep'18-Jun'19):

* Sep'18 +0.020 at 97.630

* Dec'18 +0.040 at 97.410

* Jun'19 +0.060 at 97.275

* Jun'19 +0.065 at 97.170

* Red pack (Sep'19-Jun'20) +0.090-0.075

* Green pack (Sep'20-Jun'21) +0.095-0.090

* Blue pack (Sep'21-Jun'21) +0.090-0.085

* Gold pack (Sep'22-Jun'22) +0.085

TECHNICALS: 

US DOLLAR LIBOR: Latest settles,

* O/N -0.0038 to 1.9125% (-0.0031/wk)

* 1 Month -0.0005 to 2.0668% (-0.0153/wk)

* 3 Month -0.0187 to 2.3193% (-0.0289/wk)

* 6 Month -0.0050 to 2.5121% (-0.0215/wk)

* 1 Year -0.0120 to 2.8155% (-0.0166/wk)

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

* Secured Overnight Financing Rate (SOFR): 1.91% vs. 1.88% prior, $761B

* Broad General Collateral Rate (BGCR): 1.90% vs. 1.87% prior, $402B

* Tri-Party General Collateral Rate (TGCR): 1.90% vs. 1.87% prior, $384B

US SWAPS: Latest spd levels:

* 2Y -0.30/19.28

* 5Y +0.85/13.25

* 10Y +0.25/6.00

* 30Y -0.38/-6.88

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

13-Aug      -      ***  CN  Money Supply

13-Aug      -      ***  CN  New Loans

13-Aug      -      ***  CN  Social Financing

13-Aug  0700/0900  *    ES  industrial orders

13-Aug  0700/0900  *    ES  services survey

13-Aug  1500/1100  **   US  NY Fed survey of consumer expectations

Eurodollar/Treasury Option Summary

Eurodollar options, Pit/screen:

* -10,000 Green Sep 70 Straddle at 16.5 vs 9703.5/0.18%

* 21,000 Short Nov/Front Nov 75 call sprd at 0.5

* 10,000 Jun 66/67 2x1 put sprd at 0.5 vs 9710.5/0.10%

* 4,000 Short Dec 66/68 2x1 put sprd at 3.5

* 10,000 Red Dec 65/67 put sprd at 7 vs 9701/0.14%

* 6,000 Mar 70/71 put sprd at 4

US TSY OPTIONS: Latest trade,

* -9,000 TYU 123.5 calls at 1

* 7,000 TYV 120 Straddle all day between 107-109

* +10,500 FVU 114 calls at 7

* 50,000 TYU 122 calls at 2, on screen appears to be a buy

* -80,000 TYU 120/121 call sprd all day, price down to 15 from 18

* -35,000 TYU 120/121 call sprd at 17

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

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