Much more sedate trade day after Fed...>

US TSY FLOWS: Much more sedate trade day after Fed delivered a hawkish cut,

second 25bps rate cut in as many policy meetings. Lead quarterly Eurodollar

future (EDZ9) bounces a little after Wed's post FOMC reversal as mkts try to

price in chances of a third rate cut before yr end.

- Back to headline watching: US/China trade, geopol risk tied to middle east and

Iran.

- Fourth consecutive repurchase operation announced by the NYFR for Friday

0815-0830ET "in order to help maintain the federal funds rate within the target

range of 1-3/4 to 2 percent. This repo operation will be conducted with

Primary Dealers for up to an aggregate amount of $75B. Thu's operation fully

subscribed: $83.875B submitted ($80.05B Wed), $55.843B Tsys, $0.0 Agencies,

$19.157B Mtg backed.

- Overall market volumes moderate, better ATM vol sellers, OTM insurance buyers

both calls and puts on day.

- The 2-Yr yield is down 2.4bps at 1.7378%, 5-Yr is down 2.3bps at 1.653%, 10-Yr

is down 1.9bps at 1.777%, and 30-Yr is down 2.2bps at 2.2198%.