Activity picked up at the cash Tsy..........>

US TSYS: Activity picked up at the cash Tsy re-open as regional players seemed

happy to sell the short-end of the 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 re: cuts, although the overall message of his

speech was largely in line with that given at June's FOMC. Also worth

highlighting that Fed non-voter Barkin noted that the FOMC's current stance is

moderately accommodative & declined to comment on rate cut prospects. In terms

of Fed personnel matters, Bullard revealed that he was approached by the Trump

admin in recent months re: the possibility of assuming a seat on the Fed's board

of Governors, Bullard noted that is happy in his current role.

- T-Notes last -0-05+ at 127-30+, 10-Year cash Tsy yields at 2.007%. Eurodollar

futures 3.0-3.5 ticks lower thru the reds. Fed Fund futures price a 25% chance

of a 50bp cut (from ~45% at the Asia/EU crossover on Tuesday), per CME Fedwatch.

- Durable goods provides the highlight of the econ docket today, with an address

from Fed's Daly is also slated. Conventional 5-Year & 2-Year FRN supply is also

due in the wake of yesterday's solid 2-Year auction (cut off was pre-Powell).