*** Tsys trading weaker again.......>

US TSYS SUMMARY: *** Tsys trading weaker again after apparent early afternoon

resolution of US govt shutdown, at least until February 8, wires reported after

Democrats said willing to agree on stop-gap bill in exchange for DACA vote

promise from Republicans. 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 +15.0 to 2826.0; gold little firmer (XAU +0.44, 1332.29), West Texas crude

weaker after late morning rally tied to Oklahoma rig explosion (WTI -0.17, 63.20

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

* Tsys opened weaker but off overnight lows on what was widely expected to be

slow start to wk, mkts awaiting word of US gov shutdown. 10Y yld at 2.650% after

tapping 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. 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