The FOMC stood pat as expected &.......>

US TSY/RECAP: The FOMC stood pat as expected & noted that inflation has moved

close to 2.0%, which represented an upgrade in its view, alongside the

introduction of the phrase that "inflation is expected to run near to the

Committee's symmetric 2.0% objective over the medium term." On the growth front

the Fed dropped the language that previously noted that "the economic outlook

has strengthened in recent months."

- Shorter dated Tsys were higher as the long end underperformed, allowing the

curve to steepen. T-Notes moved to highs in the wake of FOMC, but the long end

pared gains, as real money a/c's sold 30s, while prop a/c's sold 10s. Fast &

real money a/c's entered steepeners via 2s & 5s vs. 30s. Tsys had been supported

by a softer equity backdrop & the Tsy's quarterly refunding announcement, which

included increases in issuance across the curve, although the increases were not

as large as many exp. Block buys were noted in 5-Year futures early, likely vs.

the German Bobl adding to last week's huge box trade. Eurodollar futures were

steady/mixed after the bell, the short end underperformed all session, narrow

range out the curve. T-Notes last at 119.16, US 10-Year yields closed at 2.966%.