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Fed Chairman Powell Presser React

US TSYS
  • Treasury futures had reversed course and extended session lows in 10s-30s as Chairman Powell discussed the FOMC decision and policy projections. Jun'24 10Y tapped 110-01.5 (-3) low while curves held steeps (2s10s marked -33.791 high).
  • Tsys have since rebounded as Chairman Powell said the Fed had "discussed issues related to slowing the pace of decline in our securities holdings. While we did not make any decisions today on this, the general sense of the committee is that it will be appropriate to slow the pace of run-off fairly soon."
  • At the moment, TYM4 trades 110-07.5 (+3), 10Y yield at 4.2946%.

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