After a weaker start, rates traded firmer...>

US TSYS: After a weaker start, rates traded firmer to steady in the long end by

the bell, with T-Notes closing back from best levels and the curve bull

steepening on the day, as U.S. equities moved off of session lows into the

close. Strong 2- & 5-Year auctions aided the short end/belly of the curve,

further promoting the flattening observed late in the day, as dealer takedown

moderated across both sales, and both auctions stopped through.

- Focus fell on earnings season, with early support for the space driven by soft

earnings from Caterpillar and downward revisions to guidance from Nvidia, both

citing China as a source for concern.

- Worth noting that the Tsy has raised its Q1 borrowing estimate, owing to a

lower opening balance. While details of the Tsy's quarterly refunding are

scheduled to be released on Wednesday, January 30 at 08:30 ET.

- Tuesday brings 7-Year & 2-Year FRN supply, with many U.S. data releases still

delayed owing to the shutdown.

- T-Notes last 121.15+, U.S. 10-Year cash Tsy yield closed at 2.744%.