BMO analyst Ian Lyngen said on the Fed......>

US VIEW: BMO analyst Ian Lyngen said on the Fed chair race that "with bets being

placed as to who will receive Trump's nomination for the top spot at the Fed,

Yellen is reportedly meeting with the President today to discuss the possibility

of her staying on as the Chair. We've been impressed with how confident many in

the market appear to be with their predictions of one candidate over another,

but frankly we don't share the same degree of certainty on the outcome. That

isn't to suggest we haven't spent a great deal of thought and effort on the

topic, but the combination of what might be best for the economy, Fed

independence, and Trump's presumed ambitions at a second term does not

necessarily make one of the choices an 'obvious' winner."

- He adds, "That said, the one aspect of this process that is evident, even to

us, is that the market (for better or worse) is viewing a Taylor nomination as

the most hawkish alternative, and one that would weigh most heavily on the

5-year sector and serve to further flatten the curve. Watch this space, as they

say."