Tsys remain underpinned in the wake of......>

US TSYS: Tsys remain underpinned in the wake of the latest Fed communique, which

has left a July rate cut firmly on the table, in turn providing the driving

impetus overnight. Morgan Stanley & UBS have amplified their calls for a 50bp

cut later this month, with market pricing of such an event back to ~25% after

sitting at 0% early Weds. T-Notes last 0-05+ higher at 127-19+, with the belly

of the curve outperforming at the margin after yesterday's twist steepening.

- A couple of block trades were noted overnight, with a 10.0K of the FVQ9 118.00

calls blocked (sources pointed to a seller), while 5.0K of the TYQ9 128.25 calls

were blocked (also looked like a seller). Screen trade also saw some decent flow

in the TYQ9 128.25 calls with over 15.0K trading (pre-block).

- Eurodollar futures trade 1.0-3.0 ticks higher through the reds at writing.

- Fed Chair Powell will appear on the Hill again today, this time in front of

the Senate Banking Committee. While Powell is unlikely to provide any fresh

insight there is plenty of Fedspeak elsewhere to wet the whistle, with Williams,

Bostic, Barkin, Quarles & Kashkari all due to speak. U.S. CPI and wage data

provide the highlights of the economic docket, with 30-Year supply also due.