Curve Bear Flattens On Thursday, Powell On Tap

TYU3 deals at 109-18+,-0-00+, in line with late NY levels.

• Cash tsys finished 3-6bps cheaper across the major benchmarks, the curve bear flattened.
• Tsys were pressured in the European session as participants looked ahead to Fed Chair Powell's remarks this evening at the Jackson Hole Symposium. The market awaits any signals on the path for US monetary policy.
• A recovery from session lows was facilitated by Philadelphia Fed President Harker telling MNI that he is inclined to support holding rates at their current level at least through the end of the year and possibly longer.
• Fedspeak from Boston Fed President Collins weighed, and tsys ticked lower to sit at session lows into the close. She noted that additional increments of hikes may be needed and that the Fed is near to a place where they can hold for a substantial period of time.
• Tokyo CPI provides the highlight in Asia today. Further out the aforementioned speech from Fed Chair Powell headlines, US University of Michigan consumer sentiment also crosses.