Treasuries have bounced slightly....>

US TSYS SUMMARY: Treasuries have bounced slightly following an MNI sources story

suggesting the Fed could pause/end rate hikes earlier than expected.

- The Dec 18 T-Note future is down 6.5/32 at 119-045, having traded in a range

of 119-005 to 119-85.

- Curve modestly steeper: 2-Yr yield is up 0.8bps at 2.8118%, 5-Yr is up 1bps at

2.897%, 10-Yr is up 1.1bps at 3.0737%, and 30-Yr is up 1.5bps at 3.3294%.

- Short-end yields ticked lower following MNI Fed Exclusive piece, with 2-year

down from 2.818% at the time of release.

- The Federal Reserve could end its cycle of interest rate hikes as early as the

spring, as it starts to consider at least a pause to its gradual monetary

tightening since December 2015, senior Fed sources have told MNI.

- Eurodollar futures are down but have bounced off lows; Jun20-Dec21 contracts

off 3.5-4 ticks (had previously been 6+ ticks lower).

- Durable goods data headlines Wednesday, as well as a 10-Year TIPS auction

ahead of the Thanksgiving holiday.