Tsys trading mixed, curves broadly.....>

US TSY FLOWS: Tsys trading mixed, curves broadly flatter but off midday lows in

the lead up to the FOMC annc. Decent volume belies many sidelined ahead FOMC

policy annc w/SEP, Fed chair presser 30 minutes later. Rate hike of .25 bps

(funds range to 2.25%-2.50%) with a dovish tone widely anticipated, IOER .20bps.

- Rates opened well bid even as equities ground higher. Wasn't until better than

expected existing home sales that spurred consistent, scale-offers in short end

Tsys, and all across Eurodollar strip (except for EDH9). Tsy yld curves pancaked

as a result: 5s30s currently -3.615 at 38.391 vs. 37.516L.

- Another significant move in swaps: Spds gapped wider since prior heads up

(belly was still tighter but wings had already started bouncing. Decent round

trip across the curve. Move corresponded w/midday turn in rates, large payer 2s

at 2.79062% including decent selling in Eurodollar Reds (EDH0-EDZ0), heavy

flurry two-way fly trades: 2s6s7s payer, 2s5s6s receiver, 2-way 3s4s5s, 3s4s7s

and 3s4s6s receiver, 5s6s7s receiver and 5s7s10s receiver flys. Tsy cash/ylds:

2Y 100-05.5 (2.658%), 5Y 100-30.5 (2.666%), 10Y 102-18.5 (2.823%), 30Y 106-10.5

(3.050%)