T-Notes finished Thurs just shy of.....>

US TSY/RECAP: T-Notes finished Thurs just shy of best levels, with some marginal

outperformance of the belly in cash trade. Both partisan Bills re: gov't funding

failed to pass through the Senate, with Republicans stressing the need for a

down payment re: the wall in the wake of the vote. Democratic leadership played

this idea down immediately. CNN reported that "The White House is preparing a

draft proclamation for President Donald Trump to declare a national emergency

along the southern border and has identified more than $7 billion in potential

funds for his signature border wall should he go that route."

- Risk-off gained momentum earlier in the day as Wilbur Ross noted that China

trade that a resolution was "miles and miles" away. This was walked back later

in the day as Ross stated that he thinks there is a "fair chance" a China/U.S.

trade deal. U.S. Tsy Sec Mnuchin also sounded upbeat on the discussions.

- There had been a brief dip in rates earlier on WH advisor Kudlow headline

(perhaps) telegraphing strong jobs Jan number ahead of next week's release. 

- Local data was ignored.

- T-Notes last 121.24, U.S. 10-Year cash Tsy yields closed at 2.716%.