Tsys Hit Session Highs As Stimulus Impasse Resurfaces

A couple of headlines out in the last few minutes continue to point to impasse in Washington on passing a fresh fiscal stimulus package in the near future. Dec 21 Tsy futures push up to session highs (138-01+).

• Bloomberg reports that the White House is "stepping back from stimulus negotiations", leaving talks to Senate Majority Leader McConnell.
• And almost simultaneously, McConnell relays his view on the current state of negotiations - basically, little has changed since the election.
• He is looking for something much more limited than his Democratic counterparts Schumer/Pelosi, as quoted by Politico's Burgess Everett on Twitter: "highly targeted at what the residual problems are. I gather [Pelosi and Schumer] still are looking at something dramatically larger. That's not a place I think we're willing to go...I do think there needs to another package. Hopefully we can get past the impasse we've had now for four or five months and get serious about doing something that's appropriate"