Fed on Hold/zero bound through 2022....>

US TSY FLOWS: Fed on Hold/zero bound through 2022 -- Mkt focus on minimum floor

of asset purchases in Tsys ($80B/mnth) and MBS ($40B/mnth), no taper/not quite

QE, mkts rallied despite prospect of long slog ahead, Dot plot flat through

2021.

- Both Tsys and equities regained footing after post data chop, Tsys extending

session highs by the bell, equities mildly weaker after see-sawing to session

highs. Yld curves broadly flatter for the most part, 5s30s managing to hold

1.229bp steeper at 118.39.

- Fed Chair Q&A on job losses -- cold water on equity bounce as Powell estimated

"well into the millions of people who don't get to go back to their old JOB and

there may not a job for them for some time." On the flipside, economic

"forecasters widely expect 2nd half recovery.

- Eurodollar and Tsy put buying remained robust, fading the continued surge in

underlying futures.

- The 2-Yr yield is down 3.2bps at 0.1707%, 5-Yr is down 8.1bps at 0.3198%,

10-Yr is down 9.2bps at 0.7329%, and 30-Yr is down 6.8bps at 1.5076%.