While the FOMC was generally seen...>

US TSYS SUMMARY: While the FOMC was generally seen to been fairly close to

investors' expectations, importantly there was no fourth rate hike in 2018 and

this together with comments regarding flat Philips curves and no evidence that

inflation is taking off prompted a Tsy rally that continued onwards through Asia

and into Europe.

- Currently, the 2Y is -0.6bp at 2.30% and the 10Y is -2.7bp at 2.855%. However,

the swap curve has flattened more aggressively than the cash curve in the past

24 hours. This morning, the 2-10Y swap curve reached a low of 26.7bp, its

flattest since 2006.

- Post FOMC swap flows have strangely been mostly on the steepener side. Fly

trades have been dominated receiving the belly. 

- There is little in the way of market-moving data today. Initial claims has

long since lost its impact and FHFA house prices never did move markets. Only

perhaps the Kansas City manufacturing index might garner some small market

impact.