Activity in core FI picked up at the...>

BOND SUMMARY: Activity in core FI picked up at the cash Tsy re-open as regional

players seemed happy to sell the short-end of the U.S. curve on the back the

less dovish comments from Bullard in U.S. hours. As a reminder, Fed Chair Powell

also warned against an overreaction from the Fed, although the message was

largely in line with that given at the most recent FOMC. Fed Fund futures now

price a 25% chance of a 50bp cut (from ~45% at the Asia/Europe crossover on

Tuesday), per CME Fedwatch. T-Notes last -0-05 at 127-31, 10-Year cash Tsy

yields at 2.006%. Eurodollar futures 2.5-3.5 ticks lower through the reds.

- A quiet one for Aussie bonds, with the curve running a touch flatter on the

back of the latest batch of Fed rhetoric, with little/no notable reaction to the

latest RBNZ MonPol decision from across the Tasman. YM last -2.5 ticks., XM

unch. Bills 2-3 ticks lower through the reds.

- JGB futures were hit on the back of the move lower in Tsys, but technical

support held firm. The space then rebounded after the BoJ left the size of its

1-5 Year Rinban operations unchanged, before edging lower again.

- German FI futures a touch lower; Schatz -1.0, Bobls -8.0, Bunds -0.22.