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US VIEW: Varied views on Fed Chr Yellen.....>

US VIEW
US VIEW: US VIEW: Varied views on Fed Chr Yellen 10am ET speech. The one good
thing is her speech is early, so Tsys traders can do their react trades early
presumably. But ECB Draghi speech is late as 3pm ET today, so traders may not be
able to sneak off THAT early for the weekend. Here are bank views: 
- BMO's Ian Lyngen: Yellen will "need to walk the line of acknowledging that
inflation is an increasing concern for the FOMC, while simultaneously keeping
expectations in place for a balance sheet rolloff announcement in Sept." He adds
ECB Draghi is the week's "true wildcard." 
- Citi analysts: Yellen "may use "financial stability" as a reason to sound a
tad hawkish at Jackson Hole despite CPI downside misses." 
- HSBC Ryan Wang, Simon Wells, James Lee: Yellen may "acknowledge "asset prices
in some markets have risen towards the higher end of their historical range" but
"this cld be hedged by" citing "strong capital position of banks and "moderate
growth of non-fincl debt". They add Yellen could touch on "2 key topics: 1)
Fed's intention to begin shrinking its balance sheet "relatively soon", and 2)
slowing in inflation over the past four to five months," they said.

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