*** Tsys finish weaker by the.......>

US TSYS SUMMARY: *** Tsys finish weaker by the close, off session lows. Rates

pared midday gains on as Senate voted to pass shutdown resolution to House,

expected to vote today, pundits expect US Gov back to business -- at least until

Feb 8. US$ index had rallied off lows ahead reports of agreement, DXY pared move

to near steady as Senate voted to advance bill. 

* Equities held strong gains/new all-time highs, Dow Indu new high of 26164.72,

emini +16.0 to 2827.0; gold firmer (XAU +1.52, 1333.38), oil firmer (WTI +0.12,

63.49 vs. 64.14H). Heavy Eurodlr option put volume; modest deal-tied hedging. 

* Tsys opened weaker, off O/N lows on what was widely expected to be slow start

to wk as mkts awaited word of US gov shutdown. 10Y yld tapped 2.6685% early

overnight. Heavy buying front Mar18 Eurodollar futures +90k 98.155 (+0.010),

short end supported after 3M LIBOR slipped -0.0032 to 1.7413% (+0.0230 last wk).

Orderly 2way flow on net. 

- Very large TUH/FVH steepener Block (+35.9k TUH vs. -30.4k FVH) early in second

half. Swap spds tighter, pare fraction Fri's gap wider

- Late ylds: 2Y 2.069%, 3Y 2.204%, 5Y 2.458%, 7Y 2.589%, 10Y 2.661%, 30Y 2.925%