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

US VIEW
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."

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