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Hawkish cut: FOMC annc first rate......>

US TSY FLOWS
US TSY FLOWS: Hawkish cut: FOMC annc first rate cut since Dec 2008, broadly
expected but short end came under immediate pressure as some amount of 50bp cut
was still priced into front end prior to meeting. 
- Yld curves bull flattened sharply ahead of the Fed presser, 3M10Y actually
dis-inverted >2.0bp before collapsing amid volatile press conf by the Fed chair.
Rates came under heavy selling across the curves as Fed Chair Powell said "it's
not the beginning of a long series of rate cuts" but a "mid-cycle adjustment"
- Fed chair underscored FOMC's willingness to support current economic
expansion, although both Rosengren and George dissented from the decision. Tsys
rebounded in the minutes before the NY close with long end actually extending
session highs. Prop and fast$ bought dip in 10s and 30s
- Earlier, rates jumped off lows on heels of lower than exp Jul Milwaukee ISM
mfg index 46.4 vs. 49.7 est (51.0 last month). Fast$, prop selling into latest
move knocks Tsys off initial bounce.
- The 2-Yr yield is up 1.8bps at 1.8641%, 5-Yr is down 2.3bps at 1.819%, 10-Yr
is down 5.1bps at 2.0075%, and 30-Yr is down 5.7bps at 2.5228%.

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