Tsys trading firmer after the bell,....>

US TSY FLOWS: Tsys trading firmer after the bell, rebounding off post Fed-speak

lows to near top end of range. Tsys back near last Thu's highs when 10YY fell to

1.9719 (Nov 2016 levels), currently 1.9901%. Futures volumes near twice Mon's

close. Yld curves mostly flatter, 3M10Y extends inversion. Equities extend

session lows late, ESM9 -30.0.

- Despite strong 2Y auction, short end slammed after less than dovish tone from

Fed's Bullard and Powell. July 25Bp cut still priced in while yesterday's appr

46% chance of 50Bp cut at next FOMC moderates slightly.

- Rates rebound, however, after less than dovish tone from Fed's Bullard and

Powell. July 25Bp cut still priced in while yesterday's appr 46% chance of 50Bp

cut at next FOMC moderates slightly.

- STRONG US Tsy $40B 2Y note auction (9128287A2) awarded a 1.695% rate (2.125%

on prior $40B May auction) vs. 1.705% WI, bid/cover 2.58 vs. 2.75 previous (2.83

avg). 

- The 2-Yr yield is down 0.1bps at 1.7318%, 5-Yr is down 1.8bps at 1.7292%,

10-Yr is down 2.3bps at 1.9918%, and 30-Yr is down 1.7bps at 2.5278%.