Tsys trade mildly higher by the.....>

US TSYS SUMMARY: Tsys trade mildly higher by the bell, long end underperforming

intermediates after initial post-FOMC rally, curves marching steeper. US$ index

chop post FOMC, pared gains but rebounding (DXY +.013 to 92.461 late).

- Fed held rate steady, initial react less hawkish than expected (drop

"strengthening economic outlook" while eco risks appear "roughly balanced").

Inflation upgrade: "expected to run near...symmetric 2 percent objective over

the medium term," vs. "expected to move up in coming months" prior. Long end

Tsys pared gains late, flow included real$ selling 30s, props selling 10s, curve

steepener buying from fast- and real$ 2s and 5s vs. 30s.

- Tsy qtr refunding +$1B increases across curve: $31B 3Y, $25B 10Y, $17B 30Y.

Equities weaker (emini -5.5, 2646.5; Gold firmer (XAU +5.0, 1308.90); West Texas

crude higher (WTI +0.75, 67.99). 

- Heavy block buys FVM early (+34.6k 113-11.5 avg) likely vs. -6,831 OEM (Jun

Bobl) at 130.92 -- adds to last wk super-sized blocks betting on Tsy ylds to

decline relative to Germany.

- Tsy ylds: 2Y 2.492%, 3Y 2.635%, 5Y 2.799%, 7Y 2.917%, 10Y 2.964%, 30Y 3.139%