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Rates drift near session highs after...>

US TSY FLOWS
US TSY FLOWS: Rates drift near session highs after the bell, both GOP/Democratic
shutdown bills failed to pass Senate. SPX near steady at 2637.5 vs. 2647.5H; US$
index strong (DXY +.405, 96.529 -- back to Jan 3 highs).
- Neither bills were expected to pass; chatter something may gel AFTER SOTU date
passes -- though that event dead in water as well. Brief dip in rates earlier on
WH advisor Kudlow headline (perhaps) telegraphing strong jobs Jan number ahead
next week's release.
- Rates showed little react to largest data drop of the week. Risk-off gained
momentum after earlier Wilbur Ross headline re: China trade that a resolution
w/US was "miles and miles" away. Headline bark worse than the story bite?
Ensuing headline that Ross thinks "fair chance" a China/US trade deal will be
made softened stance.
- Flow includes two-way in 2s-5s, deal-tied selling in 3s and 5s, prop and real$
buying intermediates, real$ and bank buying 30s.
- Tsy cash/ylds: 2Y 99-28.12 (2.562%), 5Y 100-11.25 (2.547%), 10Y 103-16.5
(2.712%), 30Y 106-22 (3.032%).

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