Tsys surged just prior to retail.......>

US TSY FLOWS: Tsys surged just prior to retail sales (-1.2%), scaled back

slightly post biz inv data (-0.1%) and held to narrow range into the close

w/late chop on spending bill headlines. CNN reported Trump aides worried

president may not sign bill -- further underscoring risk off action. Sen

McConnell comes out after the closing bell stating the president WILL sign the

the spending bill AND declare a state of emergency. Mkts progressively inured to

machinations, have already retraced the mild post McConnell moves. Tsys in

narrow range since paring mid-morning rally.

- Session flow included buying across the curve into morning data, better bid in

5s-10s from real$, bank portfolios. Long end pared gains post biz inv number,

drop stalled out as fast- and real$ stepped in to buy dip, props buying

intermediates. Blocked: weighted 10s/ultra-bond steepener and 2s10s flattener.

- On tap for Fri: Import/export prices; industrial production (0.1% est) and

capacity utilization (78.7% est); Feb Michigan sentiment index (p) (93.0).

Atlanta Fed Pres Bostic, "Workforce Development" conf, Al. Tsy cash/ylds: 2Y

100-00 (2.498%), 5Y 100-03.25 (2.476%), 10Y 99-22 (2.659%), 30Y 99-27 (3.007%).