Bonds Extend Session Lows As Chairman Powell Presser Begins

Tsy futures have extended session lows as Chairman Powell begins his press conference. Powell notes:

• "Economic activity expanded at a robust pace last year. Reflecting progress on vaccinations and the reopening of the economy. Fiscal and monetary policy support and the healthy financial positions of households and businesses, indeed the economy has shown great strength and resilience in the face of the ongoing pandemic."
• "Inflation remains well above our longer run goal of 2%. Supply and demand imbalances related to the pandemic and the reopening of the economy have continued to contribute to elevated levels of inflation, in particular bottlenecks and supply constraints are limiting how quickly production can respond to higher demand in the near term."