T-Notes last -0-01+ at 130-15+. Choppy......>

US TSYS: T-Notes last -0-01+ at 130-15+. Choppy post-Fed minutes trade observed

on Wednesday, as WN & US blocks helped the space to finish closer to worst

levels, while the cash curve bear flattened. To recap, FOMC off'ls officials

viewed global growth concerns & trade policy uncertainty as persistent headwinds

for the U.S. econ, leading them to adjust rates a quarter-point lower to help

recalibrate monetary policy. They made no mention of further rate cuts, only

pledging to be "flexible & focused" on incoming data. They also kicked off a

series of discussions on potential changes to the policy framework but did not

reach any conclusions. The issue of the standing repo facility did not come up.

Elsewhere, Trump kept up his recent rhetoric re: China & the Fed. On the fiscal

front the CBO noted that the U.S. fiscal outlook is "challenging" with debt on

an "unsustainable course". It now exp. the FY19 deficit will hit $960bn, USD64bn

> its May estimate. It also now looks for the FY20 budget deficit to exceed

$1tn, two years earlier than previously exp, driven by the bipartisan deal on

spending last month.

- We will hear from Fed's Kashkari (non-voter, dove) shortly.