Diaz, 33, allowed eight runs in his three appearances so far in spring training. He was among six Reds in Arizona who are out of options.
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By designating him for assignment, the Reds removed him from their 40-man roster. They have seven days to trade him or put him on waivers.
If he clears waivers, he could remain in the organization and go to the minor leagues.
After making his MLB debut at 30 years old in 2014, Diaz pitched in 142 games in three seasons for the Reds.
Walker, 25, was a fourth-round pick of the Orioles in 2012 who was claimed off waivers by the Braves on Feb. 25.
Listed as a first baseman/outfielder, he was Baltimore’s No. 3 prospect according to Baseball America in 2014.
Walker spent all of last season at Triple-A Norfolk, where he hit .264 with 18 homers, 29 doubles and 64 RBIs in 131 games. He walked 40 times and struck out 138 times in 504 at-bats.
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