Tsys trading higher late, well off.....>

US TSY FLOWS: Tsys trading higher late, well off initial knee jerk sell-off in

long end post FOMC. Yld curves broadly steeper but scaling back w/long end

paring losses. Focus turns to Fri's jobs report

- Equities strong but off highs (SPX +41.0, 2681.25 vs. 2689.75H); US$ index

lower (DXY -.376, 95.455).

- Addition of 'patient' is right on the money in terms of sell-side

anticipation, given how often that word

came up in the previews. Expect Powell to use that word in the presser as well.

- Fitch chief economist Brian Coulton observation: "Fed statement reads more

like a pause than end of the hiking cycle."

- Flow includes heavy front end buying, steepener blocks; long end comes under

renewed pressure from props, fast- and real$; Fast$ dip buyers on lows in long

end evaporate, better buyers on net in front end.

- Tsy cash/ylds: 2Y 99-31.25 (2.508%), 5Y 100-01.75 (2.485%), 10Y 103-25

(2.681%), 30Y 106-18 (3.038%).