US Tsys sold off after the FOMC........>

US TSY/RECAP: US Tsys sold off after the FOMC delivered a hawkish (at the

margin) 25bp hike, while it hiked the IOER by 20bp as expected, while the median

dot now looks for 2 further hikes in 2018 (4 in total). The longer end largely

retraced the move, with T-Notes finishing well off of worst levels and the curve

flatter on the day.

- There were a number of alterations to the Fed's opening statement, principally

a removal of the phrase "the federal funds rate is likely to remain, for some

time, below levels that are expected to prevail in the longer run," with no

replacement.

- Powell also conceded that the Fed will be in the "neutral zone relatively

soon," while the FOMC is being very careful "not to tighten too quickly."

- Post FOMC chop included fast-money & prop a/c's buying 10s & 30s covering at

start of presser.

- Confirmation of a Fed presser after every FOMC spurred near-end flatteners

targeting serials that may be considered "live" now.

- T-Notes last at 119.08+, US 10-Year Tsy yields closed at 2.966%.