Rates drifting near low end narrow.....>

US TSY FLOWS: Rates drifting near low end narrow overnight range, moderate

futures volume (TYH>320k), yld curves mildly steeper for the most part. SPX near

late overnight high at 2653.0 vs. 2656.25H; US$ index paring yesterday's surge

to 1Y high (DXY currently -.249, 96.352; 96.676H Thu). 

- Many citing WSJ article re: earlier than expected balance sheet runoff end for

moves. Otherwise, very quiet data day w/StL and NY Fed Nowcasts. Fed remains in

blackout through next Wed's FOMC policy annc (no rate move exp, % of hikes

remain low: sub-25% through summer).

- Both Senate partisan bills aimed to end partial US gov shutdown impasse both

failed in Senate yesterday, but dialog is flowing at least, generating some

positive opinions that resolution may occur in next couple weeks.

- Overnight flow included early official acct buying in long end, prop, real$

and bank portfolio selling in 10s to long end during London hours, swap-tied

selling in short end.

- Tsy cash/ylds: 2Y 99-27.25 (2.577%), 5Y 100-08 (2.569%), 10Y 103-11.5

(2.730%), 30Y 106-10.5 (3.049%).