Treasuries slid after FOMC said they...>

US TSY/RECAP: Treasuries slid after FOMC said they will proceed with balance

sheet reduction in Oct, keeping FFR steady at 1%-1.25%, they kept Dec. rate hike

on table (11 dots saw one more rate hike in 2017). FOMC voted 9-0. Median FFR

projections remained unchanged for 2017/2018 but trimmed for 2019 and the

long-run in June SEP. They cited temporary effects on inflation & economy after

hurricanes; they kept near-term assessment "roughly balanced." 

- Tsys began NY firmer and kept to a range, mixed rate levels, with mild two-way

flows, flatteners in 2/5Y, 2/10Y, li0ght sovereign/corporate debt issuance. 

- Tsys saw brisk heavy selling after FOMC. 5/30Y, 2/30Y curves flattened after

FOMC with fast selling in the TIPS. Some dip buying surfaced near the Tsy 3pm ET

futures close. 

- Block sale of 5,000 TYZ 10Y Tsy futures at 14;01pm ET. 

- US swaps: Tighter; receiver position holders caught break in short end, spread

curve steepening during post-FOMC selloff; also a $100M apparent payer of US$ 5Y

swap at 1.96017 at 2:50pm ET.

- T-Notes open Asia down up 1 tick at 125-21, 10-Year yield flat-last at 2.268.