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Atlanta Fed Bostic Boomerangs

US TSYS

Short end lead rebound, 30Y Bonds back to steady last few minutes after Atlanta Fed Bostic headlines from Yahoo Finance interview:

  • *BOSTIC: 50-BP HIKE IS NOT MY PREFERRED POLICY ACTION FOR MARCH, Bbg
  • Saturday FT interview Bostic said 50Bp hike in March possible. “Every option is on the table for every meeting. If the data say that things have evolved in a way that a 50-basis-point move is required or be appropriate, then I’m going to lean into that . . . If moving in successive meetings makes sense, I’ll be comfortable with that,” he told the newspaper." Financial Times.
  • Additional Bostic headlines:
    • PENCILED IN 3% INFLATION FOR FULL YEAR 2022,
    • ANTICIPATE LABOR, SUPPLY DISRUPTIONS WILL EASE
    • NOT SET ON ANY PARTICULAR PROGRESSION FOR POLICY
Starting to see some selling into the move from fast$, prop accts after foreign real$ noted buying in 5s. Yield curves steeper but paring back move.

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