Several regional factors during Asia........>

US TSYS: Several regional factors during Asia hours allowed Tsys to reverse

their early, albeit moderate, weakness, which was likely a result of regional

participants reacting to the latest FOMC decision. T-Notes last +0-00+ at

129-13, with yields 0.8-1.7bp lower across the curve & modest bull flattening

evident. Not much in the way of a standout flow, but a 2.0K buyer of TYZ9 helped

the contract to best levels in recent trade.

- As a reminder, the Fed delivered a 25bp cut to the Fed Funds tgt range, with a

30bp cut to the IOER in the wake of the latest $ funding stresses. There were 2

hawkish dissents, with Rosengren & George holding that particular torch for a

2nd straight meeting, while Bullard voted for 50bp cut. Only 7 dots in the

updated dot plot look for 1 further cut in '19. Chair Powell went to great pains

to disassociate this week's funding issues with real econ impact/MonPol.

Importantly, he kept repeating data-dependence, which was probably inevitable

given the split in the FOMC & the steady flow of decent data. But for a rates

mkt that went in pricing more than a mid-cycle adj., that was a disappointment.

- The NY Fed will conduct overnight repo ops again on Thursday.