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Market  Roundup, Bonds Bouncing

Tsy futures remain mixed, yield curves steeper (2s10s +4.179 at -68.154) as short end outperforms, bonds weaker but off post-data, support accelerating in last couple minutes with bonds back to late overnight levels (30YY currently 3.5355% vs. 3.5670% high).
  • Limited react to Nov Import prices (-0.6%% vs. -0.5% est), Export Prices (-0.3% vs. -0.5% est).
  • Main focus remains on final FOMC policy annc for 2022 at 1400ET, Fed chair presser 30 minutes later to discuss.
  • With a step-down to 50bp hike a foregone conclusion prior to Tue's lower than exp CPI, markets alert for changes in policy verbage and distribution of 2023 dots, not the median, which will be seen as a stale indicator. Note, while projections were submitted by voters last Friday, they had until yesterday evening to make adjustments (key in light of Nov CPI).

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