Treasury Option Action: some bullish positioning Treasury Option Action: some bullish positioning included a sale of 3k in September 125.00 puts against a purchase of calls on 10-year futures. Sources are also preoccupied by the expiry of August options tomorrow, which is dominating activity on calendar rolls and the like. September 10s are 3.5-ticks lower near 126-065 compared to their 126-155 to 126-04 session range.
Treasury announced a $90 B package of coupon offerings for next week Treasury announced a $90 B package of coupon offerings for next week, as expected, including $26 B in 2-year notes (Tuesday), $35 B in 5s (Wednesday), and $29 B in 7s (Thursday). The debt managers also announced a $15 B 2-year FRN (Wednesday), and a $48 B 3- and 6-month bill sale (Monday).
EIA natural gas storage change for week ending July 17 Gas inventories 61 Bcf build vs. consensus of 68 Bcf build.
Treasury Action: yields have simmered down Treasury Action: yields have simmered down after earlier swings on the historic low on claims. The leaders gain was well above low consensus, but below the revised May level. The T-note yield has steadied in the 2.32% area after jumping from 2.30% lows to 2.34% highs.