BMO's Aaron Kohli said today's.....>

US TSYS/RESEARCH: BMO's Aaron Kohli said today's "headlines of the FOMC minutes

offered a more balanced picture and more focus on the risks to the inflation

outlook than the statement did in September with some key headlines implying

that the Fed is keeping faith in the Phillips curve for now, but was worried

about the persistence of inflation in the longer run."

- He adds minutes headlines "painted a more mixed picture than the September

statement and the lack of movement in the 2018 dots did. There was clearly a

contingent of Fed members (a few) who said patience was warranted but "many" who

saw another rate hike coming this year. The overall tone of the minutes was less

hawkish than the market may have been expecting and while the entire curve was

flattening into the release, most of the curve (2s/10s, 5s/30s, etc) bounced

slightly steeper after the full text."