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Small Bid Pre-Powell Reversed

US TSY FUTURES

Coming up at 1330ET, Fed Chair Powell on economy/labor mkt, Brookings event, text and Q&A expected. Tsys had holding inside range, reversing small bid in 30s that developed after House passed bipartisan bill to prevent rail strike. Yield curves off deeper inverted lows in lead-up to Chair Powell (2s10s -0.8 at -74.532 vs. -77.204 low).

  • Dec step-down expectations steady as Fed funds implied hike for Dec'22 holds at 54.5bp, Feb'23 cumulative 93.3bp (92.2bp prior) to 4.765%, terminal up to 5.055% in Jun'23/Jul'23 from 5.015% this morning.

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