Tsys extended to fresh highs late in...>

US TSY/RECAP: Tsys extended to fresh highs late in the day on Wednesday, with

T-Notes closing at/near session highs, operating on decent volume, with the

belly of the curve outperforming in cash trade.

- T-Notes moved to fresh highs on the FOMC statement, as the Fed's removal of

"accommodative" drew buyers, in spite of the FOMC implementing the widely exp.

25bp hike. The lack of outright hawkishness in the statement/press conference

drew a 2nd wave of demand (after a quick retrace lower), even though Chair

Powell was quick to play down the removal of "accommodative" from the s'ment,

saying this does not signal a change in pol. Powell reiterated pol is still

accommodative & noted that overall fin'l conditions remain accommodative. Some

support may have be drawn from month/quarter end re-allocation weighing on

stocks/supporting Tsys, while Fed Chair Powell noted that that "by some

valuation measures, stocks are high historically."

- Focus Thursday switches to U.S. durable goods data & addresses from Fed's

Powell & Kaplan.

- T-Notes last 118.26+, U.S. 10-Year cash Tsy yields closed at 3.048%.