Per David Aldridge of NBA.com:
The Portland Trail Blazers continue to have discussions with several teams about reserve guard Rudy Fernandez, who has fallen out of favor with Coach Nate McMillan and has been seeking a trade for almost a year. The most serious suitors at the moment are the Toronto Raptors and Houston Rockets, with Toronto offering its first-round pick, the 13th pick overall, as part of a package.
No word yet as to what the Rockets may have offered. Then again, Houston seems to pop up in nearly trade rumor that ever gets leaked, leading me to believe that this may be nothing more than GM Daryl Morey calling the Blazers to check in on Rudy for kicks. If there’s a team that likes to work the phones whenever possible, even if it's just to say 'hi,' it’s the Rockets.