US Tsys ended higher, steeper after....>

US TSY/RECAP: US Tsys ended higher, steeper after FOMC voted 7-2 to tighten US

Fed Funds rate 25bp to 1.25%-1.50%; expects labor mkts "will remain strong':

cited "solid" jobs gain. Tsys gained after FOMC amid 2way flow: initial

buys/short-cvr then mild profit-taking, then more buying. Tsys began NY lower,

rebounded on tame 0.1% Core CPI, basically ignoring Nov CPI +0.4%. US$ weak,

aiding Tsys earlier. 

- Curves flatten in morning, early afternoon, post-FOMC steepeners; 2way out

curve early afternoon. FX-tied buys in morning as US$/yen lower, fast-, real$

buyers in Tsy 10s and 30s, banks buying 30s. Other sellers of cash 5s and 10s 

- US Tsy futures: 2:48pm, 2:49pm ET combined 10,000 block buy of FVH8; also had

been 2:34pm ET buy of 4,000 EDM8 at 98.09; Also 2:30pm ET Tsy futrs steepener

block buy 11,600 FVH8 buy-thru at 116-13.25/sell-thru of 2,000 WNH8 at 167-15.

Early heavy front end Eurodlr futures selling (EDZ7, EDH8). Late block buy:

2:58pm ET of 12,000 TUH8 at 107-06.5. AP: Hse, Sen agreed in principle on tax

pact, flr vote next wk.

- T-Notes down 2+ ticks at 124.17 in Asia, 10-Year yield last 2.358%.