Rates drifting near low end session....>

US TSY FLOWS: Rates drifting near low end session range by the close, average

futures volume (TYH>1.2M), yld curves mildly flatter for the most part. SPX near

midmorning highs at 2665.5 vs. 2672.5H; US$ index broadly lower (DXY -.790,

95.811). Many citing WSJ article re: earlier than expected balance sheet runoff

end for US$ weakness.

- 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). 

- Quiet two-way trade w/better selling on net in belly early, real$ buying

second half. Trade practically halted going into, and after Pres Trump annc of

temporary (3 wk) end to US Gov partial shutdown. Selling across the curve did

accelerate upon initial annc that Pres Trump would speak, but then indifference

as solution kicked down the road -- 2nd shutdown may occur after Feb 15 if

border funding not available according to pres. 

- Tsy cash/ylds: 2Y 99-25.5 (2.606%), 5Y 100-03.5 (2.599%), 10Y 103-03.5

(2.758%), 30Y 105-31.5 (3.066%).