Post-Chair Powell Roundup

Initial delayed reaction to the Fed chairs speech on policy at Brookings Inst conf, Tsy bid across curve as it became apparent gist of statements was less hawkish than markets had priced in/feared. Tsy 2s10s curve +1.882 at -71.850.

• Bonds have since pared gains ("Cutting Not Something We Want To Do Soon") while yield curves are climbing steeper, short end support gained traction (slowing down pace of hikes a "good way to balance risks").
• Dec step-down expectations gains as Fed funds implied hike for Dec'22 holds at 51.8bp vs 53bp earlier, Feb'23 cumulative 88.5bp (92.2bp prior) to 4.724%, terminal at 4.95% in Jun'23 vs. brief climb to 5.07% as Chairman Powell headlines initially hit.