BMO's Ian Lyngen and Ian Kohli.....>

US TSYS/RESEARCH: BMO's Ian Lyngen and Ian Kohli said that "in the week ahead,

attention will shift from fives/bonds" curve action "to turducken" (turkey, duck

& chicken) "confit, at least for some of us. The holiday shortened week offers

remarkably little in terms of new information and as the beginning of year-end

preparations commence, we find ourselves unwilling to play for any dramatic

directional shift in the Treasury market."

- They add that "any in-range backup in Treasury yields that further adds to the

volume base established in the 10-year sector between 2.30% and 2.40% will be

met with buying interest as the curve flattening conundrum persists. We're open

to a period of choppy price action in both the curve and outright level of

yields, but ultimately anticipate 5s/30s will touch 64 bp before any material

retracement and continue to target a revisit of 2.25% 10s." (The 5/30-year curve

is now at +73 bps today.)