FED: US TSY TO SELL $42.000 BLN 10Y NOTES NOV 12, SETTLE NOV 17

White House Press Secretary Karoline Leavitt is shortly due to brief reporters at the White House. LIVESTREAM

• Comes as Senate Majority Leader John Thune (R-SD) prepared to hold a fifth vote this evening on the House-passed Continuing Resolution to fund the government through November 21. The bill is expected to fail again, and Thune has shown no sign of changing tack on his strategy to keep re-running the vote until Democrat Senators fold amid a pressure campaign led by White House Office of Management and Budget Director Russell Vought.
• Canadian Prime Minister Mark Carney will travel to Washington, DC, today ahead of a meeting with President Trump tomorrow. Expectations are low for any major trade breakthroughs.
• House Speaker Mike Johnson (R-LA) and National Economic Council Director Kevin Hassett both signalled in interviews on Sunday that federal worker layoffs are coming. Johnson said layoffs would be “a regrettable situation that the president does not want,” while Hassett said layoffs would start “if the president decides that the negotiations are absolutely going nowhere.”
• Trump-appointed US District Judge Karin Immergut yesterday blocked Trump’s latest attempt to deploy National Guard troops to Democrat-run cities. The ruling is the second blow in two days to Trump’s bid to send National Guard troops into Portland, Oregon.
• The Wall Street Journal notes, “Trump plans to federalize 300 members of the Illinois National Guard despite the objection of Gov. JB Pritzker [D-IL].”

• RES 4: 1.2063 2.236 proj of the Feb 28 - Mar 18 - 247 price swing
• RES 3: 1.2000 Round number resistance 
• RES 2: 1.1919/23 High Sep 17 / 2.0 proj of Feb 28 - Mar 18-27 swing
• RES 1: 1.1820 High Sep 23  
• PRICE: 1.1710 @ 16:26 BST Oct 6
• SUP 1: 1.1690/46 50-day EMA / Low Sep 25 
• SUP 2: 1.1574 Low Aug 27
• SUP 3: 1.1528 Low Aug 5
• SUP 4: 1.1392 Low Aug 1 and bear trigger.

EURUSD is in consolidation mode and continues to trade above its recent lows. The primary trend direction is up and recent weakness appears corrective. Support to watch lies at 1.1690, the 50-day EMA. It has been pierced, a clear break of the EMA would signal scope for a deeper retracement and expose 1.1574, the Aug 27 low. For bulls, a clear  resumption of gains would open 1.1923, a Fibonacci projection.       

Monday's Europe rates/bond options flow included:

• DUX5 107.10/107.00ps, sold at 6.25 in 3k (ref 107.03)
• ERH6 98.00/06/12/25 broken call condor with, the ERH6 98.25/43 call spread paper paid 0.5 for both on 1.75K
• ERH6/ERM6 98.12 put calendar 5K given at 1.5, selling the M6 to buy the H6.
• ERM6 98.375/98.50/98.75/98.875 call condor, bought for 1 in 10k
• ERM6 98.50/98.625/98.75/98.875c condor, bought for half in 10k (ref 98.07)
• 2RZ5 97.75/98.00cs vs 3RZ5 97.62/97.87cs, bought the 2yr for 2.75 in 2.5k
• SFIZ5 96.05/95.90ps 1x2, bought for 0.25 in 2k
• SFIH6 96.55/96.65cs, bought for 1 in 7.78k
• SFIF6 96.20/96.10ps vs 0NF6 96.30/96.20ps, bought the front for half in 5k