Tight re-open for T-Notes after the.........>

US TSYS: Tight re-open for T-Notes after the contract knee-jerked to a fresh

session high post-FOMC decision Wednesday, as market digested the IOER cut and

acknowledgement of soft headline inflation.

- The space then softened as the Dallas Fed trimmed mean PCE (which sits around

2%) got a couple of mentions in the press conference, while Chair Powell noted

that the IOER tweak is purely technical, and not policy based. Powell also

stressed that some of the slowdown in inflation appears to be transient, talked

up the moderating economic environment and affirmed that the Fed doesn't see a

strong case for moving headline interest rates in either direction. Contract

moved off of lows towards the end of Powell's presser as he noted that he is

sure that a repo facility will be looked into at an upcoming meeting.

- The curve twist flattened on the day, aided by the purely technical comments

from Powell re: IOER adjustment. Earlier price action saw Tsys supported by a

soft ISM m'fing headline print, with a stagnant "prices paid" component noted.

- A 2s/ultras steepener was highlighted earlier Wednesday.

- T-Notes last 123.19+, U.S. 10-Year cash Tsy yields closed at 2.500%.