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Fed delivers "hawkish" cut. While......>

US TSY FLOWS
US TSY FLOWS: Fed delivers "hawkish" cut. While "uncertainties remain, Fed
deletes "will act as appropriate to sustain the expansion." Says it "will
continue to monitor" incoming data as it "assesses the appropriate path of the
target range for the federal funds rate."- After post annc chop, Tsys rip higher
after Fed chair Powell comment re: not seeing inflation moving significantly to
upside. Yld curves bull flattened but have bounced slightly.
- Large 5s/ultra-bond block (+32,000 FVZ 118-24.75, buy through 118-23.5
post-time offer) vs. -4,400 WNZ 186-30, post-time bid) on heels of shop
recommending 5s30s flattener unwind.
- Earlier: Tsys gapped to new highs, pare back a little on heels of Chile APEC
cancelation headlines (conf where Trump/Xi expected to sign Phase I deal on Nov
16-17). Uncertainty remained even after WH messaged: US/CHINA TRADE DEAL TIME
FRAME DOESN'T CHANGE.
- The 2-Yr yield is down 4bps at 1.6016%, 5-Yr is down 5.4bps at 1.6077%, 10-Yr
is down 6.7bps at 1.7715%, and 30-Yr is down 8.3bps at 2.2514%.

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