BMO's Ian Lyngen said in the.......>

US TSYS/RESEARCH: BMO's Ian Lyngen said in the "week ahead, we'll lean bullishly

on the Treasury market as the realities of the data cycle continue to contrast

with the Fed's insistence that all is 'right' with the domestic economy. To be

fair, the FOMC hasn't completely turned a blind-eye to the conspicuous absence

of inflation, but rather has instead chosen to characterize it is an enigma

that, while worth monitoring, shouldn't impact the near-term direction of

monetary policy." 

- He adds that "a quick glance at the futures market shows the January Fed funds

contract pricing in 18 bp of tightening by year-end, or a 72% probability of a

December move. While this is slightly off the peaks, the market is still

effectively pricing in a move, barring a more disastrous turn in the data."