Wedbush Securities' Scott....>

US TSYS/OVERNIGHT REPO: Wedbush Securities' Scott Skyrm eyed the U.S. Treasury

General Collateral Yield Curve and said the "term GC curve is relatively steep

after December, reflecting the probability of about a 37% chance of a tightening

by December 13th. Given the flatness of the curve after December, it means the

market isn't pricing additional tightenings, just the chance of one tightening.

But if the Fed does not move in December, I expect the market to continue to

price the chance of a tightening at the next FOMC meeting with a press

conference."

- He adds, "and if there is no tightening at that meeting, then the next FOMC

meeting

with a press conference. So here's my Fed call: I believe there is no tightening

in December and then the market continues to price the chance of successive Fed

tightenings (which do not happen) at the successive FOMC meetings through 2018."