Treasuries have steadied after......>

US TSYS SUMMARY: Treasuries have steadied after some early volatility and heavy

volume in overnight trading as midterm results came in, remaining higher as the

split Congressional result (R Senate/D House) is digested.

- T-Note futures are 5/32 higher at 118-05, trading in a broad range with low of

117-23 seen a little after 0900ET as results were coming in.

- Plenty of volume in futures, TYZ8 nearing 1 million (961k).

- Major bull flattening in the curve: 2-Yr yield down 5.1bps at 0.876%, 5-Yr

down 8.1bps at 2.265%, 10-Yr down 7.6bps at 3.321%, 30-Yr down 4.6bps at 3.895%.

- Eurodollar futures higher across the strip, with Greens and Blues leading the

way, up 1.5-2.0 ticks.

- With midterm results largely as expected, attention turns to Fed; no change

expected Thursday but changes to statement eyed, and IOER cut a tail risk.

- Fairly light on data today (MBA mortgage applications, Fed LMCI; also US Tsy

$19B 30Y bond auction).

- Pres Trump holding a news conference at 1130ET.