Fed on hold -- nod toward remaining....>

US TSY FLOWS: Fed on hold -- nod toward remaining on hold through 2020 as FOMC

drops "uncertainty" but will continue to monitor global risks. US$, Vol offered

as were short end Eurodollar futures. Short end yld curves under pressure, while

desks noted 5s and 10s bought vs. 30s.

- There were a couple knee-jerk sales across the board post Fed annc, but fast

rebounds. -- rates surged to new highs as Fed chair presser got underway. Lower

for longer message spurred better buying in Tsys.

- Overall volumes were rather muted for final FOMC of 2019, many plying

sidelines in lead-up to year end. No deal-tied hedging while some selling in

long end noted ahead Thu's 30Y bond auction re-open.

- Swap spds running wider with long end off earlier highs, fast$/prop acct payer

unwinds as rates surged on Fed Chair Powell inflation questions.

- The 2-Yr yield is down 3.8bps at 1.6133%, 5-Yr is down 4.8bps at 1.6381%,

10-Yr is down 4.9bps at 1.7931%, and 30-Yr is down 3.6bps at 2.2284%.