US bonds and rates are a little.....>

US TSYS SUMMARY: US bonds and rates are a little stronger ahead of the FOMC

decision later today.

- The Dec 18 T-Note future is up 3.5/32 at 118-180, having traded in a range of

118-140 to 118-185.

- There has been a bit of bull steepening in the Tsy curve, with gains focused

on the 10-Yr segment. The 2-Yr yield is down 0.8bps at 2.831%, 5-Yr down 0.7bps

at 2.9749%, 10-Yr down 1.5bps at 3.0815%, 30-Yr down 1.1bps at 3.2149%.

- Eurodollar futures are likewise stronger across the strip, with outperformance

in contracts Dec21-beyond, up 2.5-3.0 ticks.

- The dollar is a little stronger, rising further after headline that China will

cut import tariffs on some goods from Nov 1.

- Re FOMC, as our POV pointed out Monday, FI markets have been pricing in a hike

at this week's FOMC policy annc for over a month now, dealers widely in-line,

with most falling in line with a fourth 25bps hike at the Dec meeting.

- US New home sales data for August are due at 1400GMT, expected to hold steady

at a 627,000 annual rate following declines in previous two months.