US TSYS: VERY QUIET START TO WK; EUROPE BACK IN PLAY TUESDAY

US TSY SUMMARY: Steady to mixed after the bell, near middle of narrow range on

very light session volume (TYM<590k) as a result of of European spring holiday

closings. Fed speakers Bostic, Barkin taking their turn explaining "symmetric"

inflation on day having little effect on mkts.

- US$ index climbed higher earlier (DXY 92.974H) weighed on Tsys, pared gains in

second half to 92.757, +.191.; equities firmer (emini +4.5, 2677.5); gold weaker

(XAU -1.44, 1313.91); West Texas crude tapped 70.84 high early, as mid-East

tensions heat up (headlines saying Israeli oil minister Steinitz threatening

Syrian Pres Assad over Iran). Late reversal: crude didn't like the Trump annc on

Iran deal (1400ET Tuesday): WTI now +.01 at 69.73.

- Mixed two-way flow on net, fast$, props in 2s-10s. Swap spds running wider

after the bell, at/near top end of range on very light flow. While limited

swappable supply played a role in underpinning spds on the day, limited second

half flow did include $190mln receiver of USD 5Y at 2.92%, Spd curve steepeners

in 3s5s and 5s10s. 

- Tsy ylds: 2Y 2.497%, 3Y 2.631%, 5Y 2.785%, 7Y 2.900%, 10Y 2.950%, 30Y 3.120%

US TSY FUTURES CLOSE: Trades steady /mixed after the bell, narrow range on very

light session volume (TYM<590k). Curves narrowly mixed, update:

* 2s10s +0.227, 44.897 (45.654H/43.962L);

* 2s30s -0.264, 61.855 (62.773H/60.953L);

* 5s30s -0.488, 33.181 (33.930H/32.493L);

Current futures levels:

* Jun Ultra bonds down 1/32 at 156-22 (156-10L/157-00H)

* Jun 30-yr Bond futures down 1/32 at 143-20 (143-11L/143-27H)

* Jun 10-yr futures steady at 119-22.5 (119-18.5L/119-24.5H)

* Jun 5-yr futures steady at 113-16.75 (113-14.25L/113-17.75H)

* Jun 2-yr futures up 0.25/32 at 106-00.5 (105-31.50L/106-00.75H)

US EURODOLLAR FUTURES CLOSE: Holding mildly lower levels across the strip by the

close, near middle narrow session range on light volume. Current White pack

(Jun'18-Mar'19):

* Jun'18 -0.005 at 97.605

* Sep'18 -0.005 at 97.485

* Dec'18 -0.005 at 97.340

* Jun'19 +0.000 at 97.235

* Red pack (Jun'19-Mar'20) steady to -0.005

* Green pack (Jun'20-Mar'21) -0.010

* Blue pack (Jun'21-Mar'21) -0.010-0.005

* Gold pack (Jun'22-Mar'22) -0.005

US DOLLAR LIBOR: Rate settles resume Tuesday following extended spring holiday

weekend.

REPO REFERENCE RATES: (rate, volume)

* Secured Overnight Financing Rate (SOFR): down to 1.72% from 1.74% prior, $752B

* Broad General Collateral Rate (BGCR): down to 1.68 vs. 1.70% prior, $349B

* Tri-Party General Collateral Rate (TGCR): down to 1.68 vs. 1.70% prior, $333B

US SWAPS: Spds running wider after the bell, at/near top end of range on very

light flow. While limited swappable supply played a role in underpinning spds on

the day, limited second half flow did include $190mln receiver of USD 5Y at

2.92%, Spd curve steepeners in 3s5s and 5s10s. Latest spd levels:

* 2Y  +0.56/27.21

* 5Y  +0.25/13.12

* 10Y +0.53/3.88

* 30Y +0.56/-10.69

PIPELINE: $1B Kellogg 2-part issuance leads

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

05/07 $1B #Kellogg $400M 3Y +65, $600M 10Y +140

05/07 $500M #Amcor Finance 10Y +158

05/07 $500M #Clorox 10Y +97

05/07 $550M #PACCAR Financial $300M 3Y fix +48, $250M 3Y FRN +26

05/07 $Benchmark Consolidated Edison 10Y +95a, 40Y +145a

05/07 $Benchmark Bank of America PerpNC5 6%a

05/07 $Benchmark General Dynamics 7-part, ne details yet

Potential upcoming issuance:

* $Benchmark, United Technologies

* $Benchmark, Coca-Cola (KO)

* $Benchmark Qualcomm, history of large annual issuance

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

- May 08 Fed Chairman Powell, SNB/IMF event, Zurich, 0315ET 

- May 08 Apr NFIB Small Business Index (104.7, --) 0600ET 

- May 08 05-May Redbook retail sales m/m (0.5%, --) 0855 

- May 08 May IBD/TIPP Optimism Index (52.6, --) 1000ET 

- May 08 Mar JOLTS job openings level (6.052m, --) 1000ET 

- May 08 Mar JOLTS quits rate (2.2%, --) 1000ET 

- May 08 US Tsy $31B 3-Year note auction, May 15 settle, 1300ET

Eurodollar/Treasury Option Summary

Eurodollar options, Pit/screen:

* -2,000 short Jun 71 straddles, 10.5

* -3,000 short Jul 70/71 strangles, 10.0

* +3,000 Green Dec 80 calls, 1.0 vs. 96.98/0.05%

* Update, total -30,000 Dec 77/78 put spds on 1:1 basis at 11.75 after 16k

traded at 30.5

* total 16,000 Dec 77/78 2x1 put spds, 30.5

* -5,750 Dec 71/72/73/75 put condors, 4.5 vs. 97.35/0.10%

* +4,000 Green Jun 71/72/73 call trees, 1.5 vs. 97.00/0.10%

* 4,000 May 76 straddles, 3.0

* +7,500 Jul 75 straddle w/Jul 73 calls, 22.0

implieds under pressure

* -5,000 Sep 75 straddles, 13.5, goes offered last couple minutes

* 3,750 Green Jun 71/72 2x3 call sprd at 2.5

* 3,500 Blue May 68 put at 1

* 4,000 Green Dec 80 call at 1

Tsy options/Pit/screen:

* 2,000 TYM 122 calls, 2/64 vs. 119-28/0.05%

* 1,000 TYM 120 calls, 13/64

* -950 TYM 119.75 straddles, 47/64 vs. 119-18/0.10%

* 1,200 FVU 113.25/113.75 call spds, 12.5

* +1,450 FVN 113.25 straddles 16.5/64 over the FVM 113.5 straddles

* Modest screen buying TYM 120 and 120.5 calls

Blocks, 0908:00ET

* 16,805 TYN 120/121 call spds, 14/64 vs. 119-24/0.09%

Late overnight screen trade

* 10,000 wk2 FV 113 puts, 1/64 (open interest only 768)

* Earlier on screen +10,000 TYM 119.25 puts, 14/64

Blocks, 0539:55ET, June options expire May 25

* +7,500 TYM 116.75/117.75 put spds, 1/64

* +7,500 TYM 117/117.75 put spds, 1/64

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

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