T-Notes drifted lower in an Asia-Pac........>

US TSYS: T-Notes drifted lower in an Asia-Pac session that was bereft of

highlights. The contract hovers around the post-FOMC/Asia-Pac lows at writing,

with cash Tsys closed until the London open, owing to the Japanese holidays.

- The Fed trimmed its IOER & acknowledged soft headline inflation. The space

then softened as the Dallas Fed trimmed mean PCE (which sits around 2%) got a

couple of mentions in the press conference, while Chair Powell noted that the

IOER tweak is purely technical. Powell also stressed that some of the slowdown

in inflation appears to be transient & affirmed the Fed doesn't see a strong

case for moving headline interest rates in either direction. T-Notes moved off

lows towards the end of the presser, as Powell noted that he is sure that a repo

facility will be looked into at an upcoming meeting. The curve twist flattened

on the day, aided by the purely "technical comments" re: IOER adjustment.

- CNBC & Politico source reports have pointed to optimism re: impending

progress/agreement surrounding U.S.-China trade matters.

- Eurodollar futures trade 1.0-3.5 ticks lower at writing.

- T-Notes last 123.16, U.S. 10-Year cash Tsy yields closed at 2.500%.