4:39pm: Joel Sherman says the Yankees are "strongly inclined to lower the $10MM offer" made to Pettitte now that he’s rejected it. A deal seems unlikely, though moving some salary might compel the Yanks to put the $10MM offer back on the table.
3:34pm: Sam Borden, attending the Mark Teixeira press conference, said Hal Steinbrenner "did not seem particularly optimistic" about re-signing Pettitte.
TUESDAY, 10:17am: John Harper and Ken Rosenthal are both saying the Yankees haven’t closed the door on signing Pettitte. Brian Cashman has talked to Pettitte’s agents recently, according to Harper. He adds that the Yanks "seem determined to draw the line at $10 million."
MONDAY, 10:18pm: According to Tyler Kepner of the New York Times, Andy Pettitte rejected the Yankees’ one-year, $10MM offer. The Yanks could certainly find a useful free agent arm for a similar price, or else just go with internal options. But one more veteran in the rotation could go a long way.