Jefferies economists Ward..........>

US TSYS/RESEARCH: Jefferies economists Ward McCarthy and Tom Simons said that

this past week, "movement in Treasury market rates were mixed last week as the

curve continued to flatten. It was a very busy week for data, and the tone of

the releases showed that the economy has rebounded from the hurricanes that hit

the Gulf states in August and September and that things are even better now than

they were before."

- They added that "the October CPI seemed to signal an "all-clear" for a

December rate hike as there was a noticeable drop-off in talk about concern

about the inflation environment in the Fed speak that trickled out throughout

the week. In D.C, tax reform moved forward as the House passed their version of

the bill, but the upcoming duel in the Senate and the eventual reconciliation

process still present plenty of opportunities for things to be derailed."