Market Roundup, Punch and a Jab

US FI markets trading weaker across the board, reversing early support after Bank of England announced .25bp rate hike to .5, hawkish news that nearly half (4 of 9) Bank members called for .5bp hike.

• US Tsy continue to extend session lows, yield curves bear steepening (5s30s +1.28 at 51.15), 30YY taps 2.1808 high, 10YY 1.8432% high.
• Technicals: TYH2 at 127-19.5 (-16.5) vs. 127-17.5 low -- still above first support: 127-06.5/02 low from Jan 26/low Jan 19 bear trigger. Next support: 127-00.5 July 31, 2019 low.
• Market shrug on ECB leaving key deposit rate at -0.5%; subtle statement change omits "and in either direction" in shift to next step in addressing inflation.
• Little react to US weekly claims data this morning (238k vs. 245k est), Unit Labor Costs +.3% vs. 1.0% est.
• More focus on Fri's employment data for Jan (+150k est vs. +199k in Dec) -- little change to estimate after Wed's ADP private employ miss: almost 500k below consensus in January and further dampened expectations ahead of payrolls on Fri. Even though the initial reaction was largely unwound, it appeared to set the stage for the subsequent rally after Treasury Refunding that was largely but not completely as expected along with the US announcing the deployment of troops to Eastern Europe.