A muted re-open for the T-Notes after a.....>

US TSYS: A muted re-open for the T-Notes after a heavy session on Tuesday saw

the contract unwind Monday's rally, aided by a strong rebound in equities.

- The sell-off briefly abated as Fed Chair Powell noted the Federal Reserve is

closely monitoring developments in trade negotiations and is prepared to act "as

appropriate" to sustain the expansion, triggering a knee-jerk move higher in the

complex, before we faded again. Elsewhere, Fed Vice-Chair Clarida noted that "we

will put in policies that need to be in place to keep the economy, which is in a

very good place right now, and it's our job to keep it there." Fed's Kaplan

spoke with the WSJ, noting that he "wants to take a little bit more time and be

patient here, because some of these recent events could be reversed," re: trade

tensions. Earlier in the day Fed's Evans reiterated his data dependent stance.

- Participants had varied takes re: the latest comments from Clarida & Powell,

but the lack of the words "transitory" & "patient" in Clarida & Powell's

addresses had many pointing towards greater chances of a rate cut, although the

speeches ultimately offered little new.

- T-Notes last -0-04+ at 126-14+, with 10-Year Tsy yields closing at 2.130%.