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

US TSYS/RESEARCH: BMO's Ian Lyngen said the Treasury mkt "was under pressure"

today "from a combination of factors that speak more to the market's indecision

than to any convincing trend. Choppy price action in the wake of all the new

fundamental information offered this week is certainly consistent with the

process of consolidation that we've been anticipating."

- He said the "initial downtrade" in Tsys "was reinforced by a round of improved

GDP estimates, which included the GDPNow tracker that increased to +2.8% versus

+2.5% prior on the contribution of inventories. We're content to concede the

point that a bounce in inventories is in line with the market's expectations and

the process of estimating the extent of that influence is an inexact science

this close to the official release. That said, the contribution of personal

consumption to the overall pace of growth will be our focus, in no small part

because it takes the noise of inventories and trade out of the series, and, of

course, it is the vast majority of the domestic economy."