Tentative risk-on theme continues,.....>

US TSY FLOWS: Tentative risk-on theme continues, equities tugged higher (SPX

+14.75 at 2759.5) partially based on competing headlines that Trump will sign

bipartisan border funding deal and to avoid self-imposed Feb 15 deadline, but

potential for late hour rejection always a potential. 

- MNI poll sees near 45% expect Trump to reject deal but open door to extending

deadline, 26% expect Trump to accept deal as is while 21% see Trump calling a

national emergency. Only 4% expect a rejection and second government shutdown.

- Third consecutive session heavy deal-tied selling, $5B ATT 10Y/30Y issue leads

after Tue's $11.5B Altria, week on pace for >$50B issuance.

- Knee-jerk program, fast$ selling after flat Jan CPI, rates largely held early

range, risk-on gained momentum on Trump headlines, supply hedging added

pressure; 2s10s, 5s30s flatteners.

- On tap for Thursday: Aside from weekly claims, Final Demand PPI (0.1% est) for

January; Retail Sales (0.0%) for December; business inventories for November

(0.2%). Tsy cash/ylds: 2Y 99-29.75 (2.535%), 5Y 99-27.75 (2.613%), 10Y 99-08.5

(2.708%), 30Y 99-10.5 (3.033%).