*** Words matter -- and in the......>

US TSYS SUMMARY: *** Words matter -- and in the case of the Jan FOMC it's the

addition of "further" to gradual hikes that hammered rates later in session.

Move over Tsy supply, make room for the FOMC minutes. Emini rallied to session

high of 3746.75 (+32.75), before reversing gains late (-20.0, 2694.0), gold

lower as well (XAU -4.43, 1324.71).

- US$ index, DXY turned negative (-.120 to 89.596) briefly post auction, adding

to Tsy sell-off/extending session lows in long end, short end reversing initial

gains. Post minutes bid in short end on large Block buy of +14.6k TUH at 106-16.

- Sources report heavy long end selling/futures and cash, banks, props, real$,

stops triggered as well w/30Y yld tapping 3.2314% in late trade, revisiting Jun

'15 highs; 10Y taps 2.9537% level not see since late Dec '13.

- Heavy roll volume in futures from March to June ahead next wk Wed's first

notice date (June futures go "top step" on Feb 28). Heavy Eurodollar futures

selling, rate hike% climbs >75% for second hike at Jun FOMC. $35B 5Y auction on

screws 2.658%

- Late ylds: 2Y 2.274%, 3Y 2.441%, 5Y 2.684%, 7Y 2.865%, 10Y 2.945%, 30Y 3.221%