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T-Notes last +0-03 at 127-16+ after.........>

US TSYS: T-Notes last +0-03 at 127-16+ after closing in the upper end of
Wednesday's range, following post-Fed chop, with the curve twist flattening.
- Wednesday bought about the first FOMC rate cut in a little over 10 years, with
the Committee trimming rates by 25bp, meeting broader exp. Rosengren & George
dissented, although this wasn't a source of any real surprise. The Fed also
advanced its plans to end balance sheet shrinkage to Aug '19 (prev. Oct '19).
- Chair Powell's communique has received widespread criticism from seasoned Fed
watchers, in addition to Pres. Trump. He described the move in rates as
insurance against a still-constructive baseline, "not the beginning of a long
series of rate cuts" but a "mid-cycle adjustment," underscoring the Fed's desire
to support the current econ expansion. Powell then noted that he hasn't
committed to just one cut, while suggesting that it is not particularly likely
that the Fed will resume hiking in the current business cycle as he pointed to
issues abroad & domestic inflation as the driving factors behind the move.
- Elsewhere, Chicago PMI logged the deepest rate of contraction since Dec '15.
- Focus Thursday turns to m'fing ISM.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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