T-Notes trade tightly at the re-open in.....>

US TSYS: T-Notes trade tightly at the re-open in the wake of the Fed's latest

MonPol decision, with the contract last -0-02+ at 129-10.

- As a reminder, the Fed delivered a 25bp cut to the Fed funds target range,

with a 30bp cut to the IOER in the wake of the latest $ funding stresses. There

were 2 hawkish dissenters, with Rosengren and George holding that particular

torch for a second straight meeting, while Bullard voted for 50bp cut. Only

seven of the dots in the updated dot plot look for one further cut this year.

- Fed Chair Powell gave no quarter to all those suggesting asset purchases would

be announced, though as he suggested, the Fed will probably figure out over the

next 6 weeks whether they should have gone further in taking action on the

funding situation. He went to great pains to disassociate this week's problems

with real economic impact/MonPol. Importantly, he kept repeating

data-dependence, which is probably inevitable given the split in the FOMC and

the steady flow of decent data. But for a rates market that went in pricing more

than a mid-cycle adjustment, that represented a disappointment.

- The NY Fed will conduct overnight repo ops again on Thursday.