Pressured In Asia, Powell Testimony Continues Today

TYM3 deals at 110-23, 0-07+, a touch off the base of the 0-11 range on elevated volume of ~185K.

• Cash Tsys sit 2-6bps cheaper across the major benchmarks, the curve has bear flattened.
• Asia-Pac participants added to yesterday's NY weakness in Tsys as they digested Fed Chair Powell's remarks at his Senate appearance.
• 2 Year-Yield breached yesterday's highs (highest since '07) and the 2s10s inversion printed a fresh cycle extreme.
• 10 Year Yield did briefly print above 4%, however, the lack of follow through above there and subsequent tick back below the round number stabilised the long end a little (much like NY trade on Tuesday)
• On the sell side Goldman Sachs raised their Fed terminal rate forecast by 25bps to 5.5-5.75%.
• Block sales in TU (3.7k lots), FV (2.25k lots) and TY (~2.8k lots) provided the highlight on the flow side.
• There was little meaningful macro headline flow through the Asian session.
• In Europe today we have final Eurozone GDP and ECB-speak from Lagarde. Further out MBA Mortgage Applications, ADP Employment , Trade Balance and JOLTS Job Openings will cross. Elsewhere, Fed Chair Powell’s Congressional testimony continues and we have the latest 10-Year Tsy supply.