A quiet re-open with T-Notes -0-00+ at......>

US TSYS: A quiet re-open with T-Notes -0-00+ at 127-08+.

- T-Notes went out off lows on Thursday, still comfortably lower on the day. The

initial ECB decision & statement put a bid in, with the contract printing a

fresh session high in the wake of the release. The ECB held off on rate cuts but

signalled that such a move is likely to be forthcoming as it introduced "or

lower" to its forward guidance re: rates. Interestingly, there was also tweaks

to the language surrounding inflationary matters, while the Bank also opened up

the possibility of broad based package of monetary easing. Draghi held off on

the details re: potential easing matters during his presser & highlighted that

the recessionary risks are low, even as he acknowledged that the outlook is

getting worse & worse. Global FI retraced its bid as the presser didn't meet the

high threshold set by doves, with stronger than exp. durable goods data also

helping. ECB source reports tempered the sell off later in the day.

- A weak 7-Year auction rounded off a soft round of note supply, but T-Notes

failed to trouble their lows on the back of the auction.

- A ~9.9K TYQ9 127.25 put buyer came out later in the day.