A quiet re-open, with T-Notes -0-01 at......>

US TSYS: A quiet re-open, with T-Notes -0-01 at 131-03+. The space ground higher

through London & NY hours on Wednesday, drawing support from the rout in global

equities and managed to push through Tuesday's post-ISM highs, with T-Notes

closing a little shy of best levels on the day. Bull steepening was the theme,

with Fed funds futures now pricing a ~75% chance of a 25bp cut from the Fed

later this month. A 7-/30-Year steepener & a 10-Year/Ultra block steepener

reinforced the broader theme.

- The latest round of Fedspeak, from Messrs Williams, Barkin & Harker provided

little to go off, while the ratcheting up in U.S.-Europe trade tensions, based

upon the WTO ruling in favour of the U.S. re: the Airbus dispute & subsequent

tariff outlines which are set to go into play on Oct 18 added to the risk-off

theme. As a did a sub-par ADP print, with the prior month's reading seeing

negative revisions.

- Non-m'fing ISM headlines Thursday's docket, with final durable goods data &

factory goods readings also due. There will be plenty of Fedspeak with Clarida,

Quarles, Evans, Mester & Kaplan all due.