Treasuries have steadied after......>

US TSYS SUMMARY: Treasuries have steadied after Wednesday's rally, though the

curve remains flatter and the dollar weaker.

- The Dec 18 T-Note future is off highs despite continued global equity

weakness, up 14/32 at 118-60, having traded in a range of 118-30 to 118-12.

- The cash curve remains fairly flat though there has been a slight flattening

carrying on the move of the previous two sessions. The 2-Yr yield is up 0.6bps

at 2.8484%, 5-Yr is up 0.5bps at 3.0079%, 10-Yr is up 0.4bps at 3.1668%, and

30-Yr is up 0.5bps at 3.3528%.

- Strong rally in far-dated ED futures, Greens and Blues up 5.5-6.0 ticks, the

latter having been up 9.0 ticks earlier.

- Plenty of ED call options blocked in European morning, for instance seen 50k

of Mar19 97.25/97.375 1x2 call spread (for flat); 70k 0EV8 97.00 calls as well.

- Interestingly, USD remains under pressure despite risk-off move, DXY off 0.33%

at 95.168, nearly erasing October`s gains.

-Attention turns to US September CPI, expected to accelerate on the ex-food and

energy measure, weekly jobless numbers and a speech from KC Fed's George.