T-Notes last 127-11, -0-02+ lower,..........>

US TSYS: T-Notes last 127-11, -0-02+ lower, towards the mid of the Asia-Pac

range, after the contract was pressured by a block sale of ~9.7K FVU9 in early

Tokyo hours. Yields +0.5-2.4bp across the curve, belly underperforms.

- Wednesday bought about the first FOMC rate cut in just over 10 years, with the

Fed 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 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 biz cycle, pointing to issues abroad & domestic inflation

as the driving factors behind the move.

- Manufacturing ISM headlines the docket today.