Yields finishing the day a touch.......>

US TSY/RECAP: Yields finishing the day a touch higher across the curve in the

wake of the FOMC minutes, which sent T-Notes back to the mid-U.S. session lows.

- Strong volumes were largely aided by roll activity.

- Fed mins revealed several participants noted that further rate hikes "might

prove necessary only if inflation outcomes were higher than in their baseline

outlook." In fact, participants noted that there was less upside pressure on

inflation than in '18. Participants agreed to the changes in the statement that

shifted toward a "patient" stance and data dependence, but noted that "if

uncertainty abated, the Committee would need to reassess the characterization of

monetary policy as "patient" & might then use different statement language."

Almost "all participants thought that it would be desirable to announce before

too long a plan to stop reducing the Federal Reserve's asset holdings later this

year." Familiar downside risks were highlighted.

- Fed's Clarida spoke after, noting that MonPol is in a "very good place," while

stating that there are scenarios where the Fed may not hike rates in '19.

- T-Notes last 122.07, U.S. 10-Year cash Tsy yields closed at 2.645%.