Tsys jump to new session highs amid more....>

US TSYS: Tsys jump to new session highs amid more light buying. BMO analyst Ian

Lyngen said on recently released FOMC minutes that "as we parse through the

'many, most, some' of the FOMC Minutes, the first thing that jumps out is the

focus on inflation. While it's understandable that inflation expectations are

the key topic given the recent data, there does seem to be some disagreement on

the Committee. Where there is smoke?"

- He adds that "we'll point to the observation that "Many participants, however,

saw some likelihood that inflation might remain below 2 percent for longer than

they currently expected, and several indicated that the risks to the inflation

outlook could be tilted to the downside." Add to this that "Participants agreed

that a fall in longer-term inflation expectations would be undesirable, but they

differed in their assessments of whether inflation expectations were well

anchored."

- He said "we'll suggest that this is more consistent with the market's take

than the earlier hawkish Fed stance. Perhaps this is just the official

commentary catching up with the realities of the data."