T-Notes last +0-01+ at 127-15+, after.......>

US TSYS: T-Notes last +0-01+ at 127-15+, after closing near highs on Wednesday,

with curve steepening the order of the day as 30-Year yields moved higher, while

the 2-10 Year sector of the curve saw yields move lower.

- Fed Chair Powell's testimony left a 25bp cut in July firmly on the table, a

move that was once again backed by voting dove Bullard. Powell reiterated the

line from Fed's June statement, in that it will "act as appropriate to sustain

the expansion" while adding that since the meeting "uncertainties around trade

tensions & concerns about the strength of the global econ continue to weigh on

the U.S. econ outlook." The Q&A session saw Powell highlight that the latest NFP

print & U.S.-China trade war ceasefire hasn't altered the Fed's outlook.

- The minutes of the Fed's June meeting essentially underscored the idea that

many saw a stronger case for rate cuts as risks rise and inflation remains below

the 2% target. We also learnt that a presentation on the standing repo facility

was given, but there was no firm decision made on the matter.

- Morgan Stanley & UBS amplified their calls for 50bp cut later this month, with

market pricing of such an event back to ~25% after sitting at 0% early Weds.