Italian Prime Minister Mario Monti on Sunday unveiled a 30 billion euro ($40.3 billion) package, raising taxes and increasing the pension age in a drive to shore up Italy's strained finances, prompting short-covering in the euro. Ten-year Treasuries dipped 8/32 in price to yield 2.064 percent. "Another supporting factor is Friday's strong US jobs figures and the string of other solid economic data confirming that so far the negative impact from the euro zone crisis on the US economy has been limited," said Hiroki Shimazu, senior market economist at SMBC Nikko Securities. "That said, we have too many uncertainties looming to be overly optimistic. Everything hinges on what EU leaders do this week." French President Nicolas Sarkozy and German Chancellor Angela Merkel are meeting later in the day to see whether they can overcome remaining differences in order to fine-tune proposals they want to present to EU leaders in Brussels on Thursday on the eve of the summit. Markets are hopeful the EU will have taken a step towards fiscal union by Friday, agreeing on a treaty change to anchor coercive budget discipline for the 17-nation currency area. Federal Reserve Bank of Chicago President Charles Evans speaks on the outlook and dual mandate before the Ball State University Center for Business and Economic Research Annual Outlook Luncheon, Muncie, Indiana, 1710 GMT.