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*** On the bounce in rates, the........>

US TSY FLOWS
US TSY FLOWS: *** On the bounce in rates, the market was leaning more towards a
hawkish/or discounting a dovish statement from Powell this morning. While his
Q&A will hopefully be more revealing, the general opinion is Powell as Yellen
2.0, with an eye toward cautious policy tightening as inflation remains slow to
rebound, suggesting economy soft-patch. No hurry here (but short end remains
anchored -- March hike a go). On the bounce, sources noted fast$, prop buying on
lows. Note, swap curve continues to flatten, short end gapping wider following
another higher 3M LIBOR set (+0.0220 to 2.0062%, +0.0500/wk) LOIS widening as
well.

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