Treaasuries are off the highs set...>

US TSYS SUMMARY: Treaasuries are off the highs set late in the European morning

Tuesday on Italy concerns, but remain stronger.

- The Dec 18 T-Note future is up 4.5/32 at 118-260, having traded in a range of

118-195 to 118-295.

- Tsy curve is bull flattening, albeit slightly less than equivalent core

European government bonds which are benefiting from Italy-related flight to

safety. The 2-Yr Tsy yield is down 1.6bps at 2.8027%, 5-Yr down 2.2bps at

2.9393%, 10-Yr down 2.2bps at 3.0613%, and 30-Yr down 1.5bps at 3.2192%.

- Re 2-yrs, saw large 22,296 TUZ8 futures block on screen at 105-127 at

05:14:57EST.

- Eurodollar futures are a little stronger, with most of the strip past Dec19 up

2.5 ticks.

- Light data but heavy Fed speak Tuesday: at 1400EST Fed Vice-Chair Quarles

speaks to the Senate Banking Committee. 1200EST Fed Chair Powell speaks in

Boston, and at 1400EST Dallas Fed`s Kaplan speaks at a luncheon.