*** Tsys trading firmer heading.....>

US TSYS SUMMARY: *** Tsys trading firmer heading into the final FOMC policy annc

of 2017, .25bp hike expected. Tsys rebounded from lower open following Nov CPI

+0.4%, core CPI +0.1%/below expectations. US$ continued to weaken, adding to

rebound in Tsys after the data. Curves flattened, 2s10s -1.519, 55.472; 5s30s

-.867, 59.482. Two-way out curve early in second half.

- Choppy post data trade, buyers reload after bout of profit taking sales into

initial post data rally. Sources report FX-tied buying as US$ slips lower, fast-

and real$ buyers in 10s and 30s, bank portfolio buying in 30s. Others reported

sellers cash 5s and 10s

- Swap spds narrowed across the curve amid prop and bank portfolio rate

receiving in 2s-10s; midmorning 5s7s8s and 5s7s10s spd flys, 2-way spd curve

flow in short end. 

- Heavy front end Eurodollar futures selling (EDZ7, EDH8) post 3M LIBOR set

+0.0150 to 1.5885%

(+0.0397/wk). Associated Press said the House and Senate have passed an

agreement in principle on the tax pact, floor vote next week.