Following yesterday's Senate........>

US TSYS SUMMARY: Following yesterday's Senate votes in which competing Democrat

and Republican bills were blocked, Senate Majority Leader Mitch McConnell and

Minority Leader Chuck Schumer have opened negotiations in a bid to end the

month-long government shutdown.

- For the time being the stalemate appears entrenched with both sides digging

in. A potential short-term reprieve in the form of a bipartisan proposal for a

three-month spending appeared to be stopped dead in its tracks after WH

spokeswoman Sarah Huckabee Sanders stated that a "large down payment on the

wall" would be required.

- TSYs have been stuck in a tight trading range today. Current yield levels:

2-year 2.575%, 10-year 2.723%, 30-year 3.042%.

- The Mar-19 TSY note future trades at 121-20 and up 3 ticks from the low.

- Euro$ futures are 0.5-3.0 ticks lower with reds underperforming.

- Reflecting the government shutdown, the Durable Goods and New Home Sale data

releases have been postponed.