No React to Atlanta Fed Bostic, Focus on Fed Chair Talk on Tuesday

Still weaker, off opening levels - while yield curves extend inversion back near mid-Dec's multi decade lows: 2s10s currently -83.160 (-6.163) vs. Dec 7, 2022 low of -85.240 - last seen late 1981.

• Heavy volumes, TYH3 over 1.7M (two-thirds of which occurred in the first half) as FI markets continue to price in higher rates for long following last Fri's blowout January jobs surge (+517k vs. +189k est) while annual benchmark revision left a notably stronger than first thought trend through 2H22 and with strong revisions for hours worked.
  • FED'S BOSTIC SAYS HIS BASE CASE IS STILL FOR TWO MORE HIKES
  • FED’S BOSTIC SAYS MAIN JOB IS TO CONTROL INFLATION
  • BOSTIC: NEED TO STUDY IF JAN. JOBS REPORT WAS ANOMALOUS
• Fed Chair Powell expected Tue at Economic Club of Washington interview (no text) time adjustment to Chairman Powell event to 1230ET, though Fed site has 1240ET. Link to Economic Club of DC..
• Fed VC Barr on financial inclusion (text and moderated Q&A) at 1400ET.
• Massive option volumes, particularly in SOFR derivatives favoring low delta puts and put spds on net.