Short end disappointed, curve flatter,..........>

FED: Short end disappointed, curve flatter, equities off - maybe Fed a little

more hawkish vs expectations, but not too many surprises really.

- Bullard going 50 cut and George/Rosengren going hold says it all on the split

on the way forward. By my count, one of those 2020 dots moving lower to 1.625%

would have brought to median down to that level, could have been a slightly

different narrative here.

- Room is still there for a further cut but Powell could well stress data

dependence in the presser (will he revive 'mid-cycle adjustment'?)...plus of

course a bonanza of questions on short-term funding pressures. Would be

surprising if he had nothing to say on the Fed taking action on that front.