Modest Bounce And Bull Flattening

A little bit of a bounce in Tsys from the post-FOMC lows in the overnight session, with the curve flattening slightly from Wednesday's steepest levels. Equity weakness has helped underpin safe havens; S&P futures up a bit from European lows.

MNI's FOMC review will be out shortly; the prevailing sell-side consensus is that while the Fed delivered on outcome-based forward guidance a little earlier than most had expected, it failed to have much of a dovish impact on an already-anchored short-end. The long-end has weakened on disappointment over a lack of clarity on a plan for asset purchase tweaks/expanded QE.

In data, 0830ET sees jobless claims and Aug housing starts/permits, along with Philly Fed.

Supply today is highlighted by $12B in 10-Yr TIPS reopening at 1300ET; we also get a combined $65B in 4-/8-week Bills at 1130ET. NY Fed buys ~$1.75B of 20-30Y Tsys.