UKRAINE: Trump Says Putin Agreed Not To Fire On Ukraine For A Week

• -20,000 FVH6 109-14.5, sell through 109-14.75 post time bid at 1149:03ET, DV01 $880,600.
• The 5Y contract trades 109-14.25 last (+.25)

The Dallas Fed's Texas Service Sector Outlook Survey showed relatively steady activity in December versus November, with a general business activity index reading of -3.3 representing a modest decline vs -2.3 prior (-4.6 had been expected). This concludes a mixed month for regional Fed services surveys, with general activity indices picking up in NY, Richmond and Kansas City, but dipping vs November in Philly and Dallas. We get the national ISM Services index report for December on January 7, with early consensus suggesting a small decline (to 52.2 from 52.6 prior) in line with the Fed surveys and a pullback in the flash S&P PMI for the month.

• The Texas report itself was mixed. The revenue index, "a key measure of state service sector conditions" per the report, rose 2.6 points to +0.1 in December and capex rose 4.3 points to 10.1, but the report also noted "labor market measures suggested little change in employment, though hours worked contracted this month. " Indicators of future activity were likewise mixed (company outlook rose 1.4 points with general business activity down 1.0 points).
• The Texas Retail Outlook Survey, which takes into account only retail firms surveyed, showed that "retail sales fell sharply" per the writeup, with the sales index falling over 14 points to -20.6.
• Price pressures were mixed as well: current prices paid ticked down 1.4 points to 26.2, with prices received more notably up 1.4 points to an 8-month high but with both remaining within the year's ranges. This was the only one of the 5 regional Fed Services surveys to show a dip in prices paid pressures from November to December.

• US TSY TO SELL $69.000 BLN 17W BILL DEC 31, SETTLE JAN 06