*** Tsy futures trading higher,........>

US TSY FLOWS: *** Tsy futures trading higher, Following core EGBs lead (30Y

Tsy/Bund spd>6.0bps wider last two sessions), lvls off top end narrow range,

light volume (TYH<155k), yld curves giving back portion of Tue's steepening. Dec

FOMC minutes today. Equities firmer (emini +3.0, 2696.0), gold softer (XAU

-1.68, 1315.82), West Texas crude headed for $61.0 (WTI +0.49, 60.86).

- Asia, Tsys opened steady/mixed, maintained narrow range on light volume

through Asia hours (Japan mkts closed for holidays until Thursday).

- London, Tsys started off steady mixed, 10s rebounding from weaker open, long

end dragging balance of curve higher over last couple hours. Trade two-way

earlier, better buying on modest volume in 10s and 30s. Mkt depth may be

hampered later in session as East coast expected to be hit by major snowstorm.

- Swaps, spds running mildly tighter on light flow, 4Y-5Y-6Y swap fly ($120k

DV01) paying in belly repeat from Tue, US$ 97.8k 6Y-10Y-13Y fly, paying the

belly and small 15Y-30Y flattener.

- Eurodollar futures, trading firmer, near top end narrow range/modest volume;

3M LIBOR set -0.0010 to 1.6959% (+0.0016/wk).