A limited re-open for T-Notes, last.........>

US TSYS: A limited re-open for T-Notes, last dealing -0-03+ at 126-28 after the

contract went out just off worst levels on Thursday, with bear steepening

evident on the curve, coming hot on the heels of Wednesday's twist steepening.

- Stronger than exp. core CPI data followed by a wide tail (> 2.5bp) in the

latest 30-Year auction (which also saw dealer participation move higher) and a

lack of overtly dovish Fedspeak all weighed on the space during NY hours.

- The NY/Asia crossover bought about a smattering of Fedspeak, coming down on

the dovish side. Governor Brainard noted that the combination of downside risks

and soft inflation create a case for looser MonPol, while stressing the Fed's

data dependence. Brainard was also quick to point to solid economic growth in

the U.S., but flagged risks surrounding business sentiment & investment. She

also highlighted growing financial imbalances. Historically Brainard is a dove.

Elsewhere, uber dovish non-voter Kashkari reiterated his call for a 50bp cut,

once again highlighting that he called for such a move in June. Kashkari pointed

to a need to re-anchor inflation exp. and stressed that he would not commit to

further hikes until inflation has strengthened.