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Rebound, Bonds Extend Highs

US TSY FUTURES

Tsy futures still whipsawing post minutes -- bonds extend session highs -- are back to pre-release levels, yld curves still steeper.

  • Fed would have gone 50 in Mar if it were not for the war in Ukraine, see one or more 50bp cuts ahead; Runoff will be $95B per month $60B in Tsy 35 in MBS - compares to $50B/mo in 2017-19 balance sheet reduction.

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