BMO analyst Ian Lyngen said next week,......>

US VIEW: BMO analyst Ian Lyngen said next week, "the forth-quarter gets underway

(where has this year gone?) and while the market awaits Friday's BLS employment

report, we suspect Treasuries will continue to find trading inspiration from the

incoming political headlines - from both Washington and overseas. The Fed's

active campaign to de-emphasize the importance of lagging core-inflation has

apparently been successful, as evidenced by the market's ability to easily shrug

off the weaker-than-expected August core-PCE print. With inflation now running

at the slowest year-over-year pace since October 2015, we're reminded that the

last time core-PCE was this low, the Fed hadn't even delivered its first

rate-hike of the cycle."

- He adds "at the risk of overstating the obvious, the FOMC has now delivered

the fourth hike of the cycle and pulled off the balance sheet taper sans

tantrum, and inflation is back to the initial departure point. Coincidence? The

Fed appears to be convinced that it is."