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Bond Bid Evaporates, Chair Powell Notes Labor Mkt Recovery

US TSY FUTURES
Tsy futures have extended session lows as Fed Chairman Powell nomination testimony got underway, recovering half the move last couple minutes.
  • Chair Powell note of raising rate "more over time if we have to" and "incredibly rapid" labor market recovery triggered program selling in long end, bonds extended session lows before drawing some fast$, prop acct buying.
  • Comments largely in-line with Mon's statement: ending asset purchases in March normalizing policy and balance sheet run-off later in the year.

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