UST's seeing some upside heading into.......>

US TSYS: UST's seeing some upside heading into Europe, TYH8 last down 2+ ticks

at 122.06+, recovering from lows of 122.01+ hit early in the session.

- US Senate adjourned late on Sunday, a vote is now set for 12pm EST to pass a

bill that would temporarily fund the government for 3 weeks.

- In terms of impact the shutdown should only have a small effect on Q1 GDP

figures, as a rough guide every week the government is shutdown should present a

drag on quarterly GDP of 0.2-0.4ppts, much of this loss can also be expected to

recouped as a boost to the Q2 readings.

- The real risks to the market is the debt ceiling debate that will come into

sharper focus late in February. The political squabbling between the Trump

administration, the GOP and democrats mean that getting any legislation passed

is an uphill struggle.